Barrick Sells Alturas Gold Project to Boroo for $50 Million

Strategic Divestment Reshapes Chile's Gold Mining Sector

Barrick sells Alturas project to Boroo for $50 million, representing a significant shift in Chile's mining investment landscape. This transaction, completed in November 2025, demonstrates how major mining corporations are strategically repositioning their portfolios while international mid-tier producers expand into South American markets. Furthermore, this deal occurs during a period of all-time high gold prices, making such strategic moves particularly noteworthy.

The deal structure reflects sophisticated risk-sharing mechanisms that have become increasingly common in modern mining transactions. Barrick retains a 0.5% net smelter return royalty on gold and silver production, providing ongoing revenue exposure without operational responsibilities. This royalty terminates after 2 million ounces of gold equivalent are produced, representing approximately one-third of the project's total identified resources.

Location and Geological Advantages Drive Strategic Value

The Alturas project sits within Chile's prolific El Indio Belt, positioned near the Chile-Argentina border where established mining infrastructure provides logistical advantages. This high-sulphidation epithermal gold system, discovered by Barrick in 2015, represents a geological environment known for producing high-grade, coarse gold deposits.

High-sulphidation epithermal systems form through shallow-level hydrothermal processes at temperatures between 200-300°C and moderate depths of 300-900 meters. These deposits typically exhibit advanced argillic alteration minerals including alunite, dickite, and pyrophyllite, creating distinctive geological signatures that experienced exploration teams can identify and target effectively.

The regional setting within a subduction zone environment along convergent plate boundaries creates favorable conditions for precious metal mineralization. However, these systems also present challenges, as gold distribution can be highly irregular, requiring extensive drilling programs to properly delineate ore zones.

Resource Profile Demonstrates Significant Scale

Alturas hosts substantial mineral resources based on comprehensive exploration programs:

The 130,000+ meters of drilling completed by Barrick provides extensive geological data that significantly reduces exploration risk for Boroo. This drilling database represents substantial historical investment and creates immediate value for the new operator.

At $8.62 per ounce of resources ($50 million ÷ 5.8 million ounces), the transaction pricing falls within reasonable valuation ranges for development-stage gold projects. The combination of indicated and inferred resources suggests potential for resource expansion through continued exploration programs.

Portfolio Optimization Drives Barrick's Strategic Decision

Barrick's divestment reflects the company's focus on maintaining a portfolio of large-scale, high-return operations. By selling development-stage assets like Alturas, the company can redeploy capital toward proven producing mines and advanced development projects that meet stringent return thresholds. This strategy aligns with current gold market surge patterns favouring established producers.

The immediate $50 million cash injection provides Barrick with capital flexibility for higher-priority investments. Meanwhile, the retained royalty structure ensures continued exposure to Alturas' potential success without bearing development risks or capital requirements.

The 0.5% NSR royalty provides long-term revenue exposure while the $10 million buyback option within four years offers Boroo operational flexibility to eliminate the royalty burden if economically advantageous.

This transaction structure has become increasingly popular in mining deals, allowing sellers to maintain upside exposure while transferring operational risks to specialized operators with appropriate development expertise and capital resources. According to TipRanks' analysis, the deal reflects Barrick's commitment to portfolio streamlining.

Boroo's Strategic Entry Into Chilean Markets

Singapore-based Boroo views the Alturas acquisition as a cornerstone investment for expanding beyond its existing Central Asian and South American operations. The company's strategic vision focuses on becoming a mid-tier global metals producer with a diversified portfolio spanning multiple commodities and jurisdictions.

Dulguun Erdenebaatar, Boroo's CEO, emphasized the transaction's strategic importance for achieving a more balanced gold and copper portfolio. The entry into Chile provides access to what industry experts recognise as world-class copper potential, positioning Boroo for potential future acquisitions in copper-focused projects.

Phased Development Approach Minimises Risk

Boroo plans to advance Alturas through a phased development strategy, building upon Barrick's established community relationships and regulatory foundation. This approach allows for:

• Staged capital investment reducing upfront financial exposure
• Community engagement continuity leveraging existing relationships
• Regulatory pathway optimization utilising established permitting groundwork
• Technical studies progression advancing feasibility work systematically

The phased approach particularly benefits mid-tier producers with limited capital resources, enabling systematic advancement while maintaining financial flexibility for other portfolio opportunities.

Transaction Terms Create Balanced Risk Distribution

The Alturas deal structure demonstrates sophisticated financial engineering that benefits both parties:

The 0.5% NSR rate represents the lower end of typical mining royalty structures, which commonly range from 1-3%. This favourable rate for Boroo reduces ongoing operational burden while still providing Barrick with meaningful production exposure.

Net Smelter Return Mechanics

NSR royalties calculate payments based on net revenue after deducting smelting, refining, and transportation costs from gross metal sales proceeds. The formula typically appears as:

NSR Payment = (Gross Revenue – Processing Costs – Transport) × Royalty Rate

This structure ensures royalty payments reflect actual economic returns rather than theoretical metal prices, providing more realistic cash flow projections for both parties. The 2 million ounce termination cap limits Barrick's total royalty exposure while providing production certainty for Boroo's mine planning.

Regional Investment Trends Signal Market Evolution

The transaction where Barrick sells Alturas project to Boroo reflects broader trends in Chilean mining sector investment patterns. International mid-tier producers increasingly view Chile as an attractive destination for portfolio diversification, particularly given the country's established mining infrastructure and regulatory framework. Additionally, this occurs against a backdrop of historic gold price surge creating favourable market conditions.

Foreign investment in Chilean mineral assets continues despite global economic uncertainties, driven by:

• Geological prospectivity in proven mineral districts
• Infrastructure accessibility reducing development costs
• Regulatory stability providing investment security
• Skilled workforce availability supporting operational requirements

The transaction also demonstrates how major producers like Barrick are optimising portfolios by divesting non-core assets to specialised operators better positioned to advance development-stage projects.

Market Valuation Context and Comparable Transactions

The $8.62 per ounce valuation for Alturas' resources provides useful benchmarking data for similar development-stage gold projects. However, valuation multiples vary significantly based on:

• Resource confidence levels (indicated vs. inferred classifications)
• Metallurgical characteristics affecting processing costs
• Infrastructure requirements influencing capital needs
• Jurisdictional risk factors impacting investment premiums
• Development timeline affecting discounted cash flow calculations

The combination of retained royalty exposure and buyback optionality creates additional value layers beyond the headline transaction price, making direct comparisons with conventional asset sales challenging. As noted by the Engineering and Mining Journal, the deal structure reflects industry best practices.

Development Timeline and Production Potential

Boroo's phased advancement strategy suggests a measured approach to bringing Alturas into production. Typical development timelines for similar epithermal gold projects range from 5-7 years from acquisition to first production, depending on:

1. Feasibility study completion (12-18 months)
2. Environmental permitting (18-24 months)
3. Construction and commissioning (24-30 months)
4. Ramp-up to commercial production (6-12 months)

The existing 130,000+ meter drilling database significantly reduces early-stage technical risk and may accelerate feasibility study completion. However, community engagement, environmental assessments, and regulatory approvals typically represent the critical path items for project advancement.

What Impact Could Alturas Have on Production?

Once operational, Alturas could contribute meaningfully to Chilean gold production, though specific output projections require detailed mining studies. The project's 5.8 million ounce resource base suggests potential for a significant, long-life mining operation that could operate for 15-20 years depending on production rates and resource expansion success.

This development timeline aligns with current gold prices as an inflation hedge trends, positioning the project favourably for future market conditions.

Risk Factors and Strategic Considerations

Despite the transaction's apparent benefits, several risk factors warrant consideration:

Geological Risks:

• Resource conversion uncertainty from inferred to indicated categories
• Grade distribution variability typical of epithermal systems
• Metallurgical complexity potentially affecting processing costs

Operational Risks:

• Community relations management in remote border regions
• Environmental compliance requirements in Chilean jurisdiction
• Infrastructure development needs for production-scale operations

Market Risks:

• Gold price volatility affecting project economics
• Currency fluctuation exposure between Chilean pesos and US dollars
• Operating cost inflation impacting profitability projections

In considering these risks, investors must also evaluate gold price forecast trends which may influence long-term project viability.

Disclaimer: This analysis contains forward-looking statements and projections that involve inherent risks and uncertainties. Actual results may differ materially from expectations. Mining investments carry significant risks including commodity price volatility, regulatory changes, and operational challenges. Investors should conduct thorough due diligence and consult qualified professionals before making investment decisions.

Future Implications for Chilean Mining Sector

The transaction where Barrick sells Alturas project to Boroo establishes important precedents for future mining asset transfers in Chile. The sophisticated royalty structure and buyback mechanisms may become templates for similar deals involving development-stage projects.

For Chile's mining sector, the transaction demonstrates continued international confidence in the country's mineral potential and regulatory framework. The entry of specialised mid-tier operators like Boroo may accelerate development of projects that major producers consider non-core, ultimately increasing overall mining sector activity and economic contribution.

The success of Boroo's advancement of Alturas will likely influence future investment decisions by international mining companies evaluating Chilean opportunities. Positive outcomes could attract additional mid-tier producers seeking similar development opportunities in established mining jurisdictions.

This strategic repositioning within Chile's mining landscape reflects broader industry trends toward specialised, efficient development of mineral assets by operators with appropriate scale and expertise for specific project requirements.

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