Barrick Gold and Highland Gold Mining Form Partnership

On February 3, 2004, Barrick Gold Corp. completed a US$40 million subscription for approximately 9.3 million ordinary shares of Russian gold producer Highland Gold Mining Ltd. Highland Gold’s total shareholdings increased to approximately 17 per cent, for a total acquisition cost of approximately US$84 million.

Barrick Gold and Highland Gold Mining also entered into agreements that provide Barrick Gold with the right to participate on an exclusive basis for up to 50 per cent on any acquisition made by Highland Gold Mining in Russia, and provide similar rights to Highland for any acquisition made by Barrick Gold in certain regions in Russia. In addition, Barrick Gold obtained a right of first refusal with respect to any third-party investment in Highland Gold Mining’s Mayskoye property.

Barrick Gold was represented in-house by Patrick Garver, executive vice-president and general counsel; and assisted in Canada by Davies Ward Phillips & Vineberg LLP, with a team that included Kevin Thomson, Jim Reid and Lori Sullivan (corporate and securities) and Geoffrey Turner and Paul Lamarre (tax); in Russia by Baker & McKenzie, with a team that included Carol Patterson, Sergei Voitishkin and Alexey Frolov; and in the UK by Nabarro Nathanson, with a team that included Gareth Jones and Edward Craft.

Highland Gold Mining was represented in Russia by Igor Boldyrev, law practice partner, PricewaterhouseCoopers Moscow; and in the UK by Cobbetts, with a team headed by Simon Ledbrooke, and included Robert Turnbull, Susan Johnston and Sefton Collett.