Barrick nixes option

Management of Rio Narcea Gold Mines (RNG-T) may consider alternative arrangements with Barrick Gold (ABX-T) following the collapse of a 1999 joint-venture agreement between the two companies.

The senior producer recently elected not to exercise its right to subscribe for 1.4 million shares of Rio Narcea at a price of $3.50 per share. At the same time, Barrick terminated its interest in a joint-venture company that had been established for the purpose of holding and exploring various exploration projects in Spain.

Rio Narcea produces gold from the El Valle gold mine in a historic mining camp in northern Spain, where it holds various exploration projects that were to have been explored by Barrick. The major informed Rio Narcea that it is interested in discussing other arrangements for possible participation in the properties.