By Stephen Nakrosis

Barrick Gold Corp. on Tuesday said it agreed to sell its 100% interest in the Lagunas Norte mine in Peru to Boroo Pte. Ltd. (Singapore).

Under the terms of the deal, Barrick will receive an up-front cash payment of $20 million, an additional $10 million payable on the first anniversary of the deal's closing and $20 million payable on the second anniversary.

Barrick said the deal also includes a smelter return royalty on gold and silver produced through the refractory sulphide ore project, as well as a contingent payment of up to $15 million based on the average gold price per ounce for the two-year period immediately following closing of the deal.

Boroo will assume Barrick's closure liability relating to Lagunas Norte of $226 million backed by an existing $173 million bonding obligation, the company said.

Boroo will also assume 100% of the $173 million reclamation bond obligations for Lagunas Norte in two tranches, Barrick said.

Barrick said the Latin American region remains an important destination for the company, and it will keep a team in Peru to continue to develop its portfolio of exploration assets and pursue opportunities to find and operate world-class gold and or copper mines in the country.

Write to Stephen Nakrosis at stephen.nakrosis@wsj.com

(END) Dow Jones Newswires

02-16-21 1345ET