On April 6 2017, Barrick Gold Corporation (“Barrick”), the world’s largest gold miner, and Shandong Gold Group (“Shandong Gold”) signed the agreement on joint development of Argentina’s Veladero Gold Mine in Jinan, Shandong province. Zhong Lun Law Firm, Canada’s Davis Ward Philips & Vineberg, and Norton Rose Fulbright provided legal services for the project. 

The project lasted eight months. Zhong Lun, as the Chinese legal advisor to Barrick, teamed up with Davis Ward Philips & Vineberg throughout the project negotiation, law/approval discussions and deal material preparations. Its partner, LI Hong, served as the project leader, and LI Hong and GUO Kejun acted as the lead partners for the project. Zhong Lun’s YU Xigang and his team were also involved in the antitrust review. Other intermediary organizations involved in the project include Norton Rose Fulbright (legal advisor to Shandong Gold), Citibank, Canada’s CIBC and KPMG. 

In the first phase of the deal, Barrick transferred 50% equity in Veladero Gold Mine to Shandong Gold for US$ 960 million; as the second step, Barrick formed a joint working group with Shandong Gold to discuss joint development of the Pascua-Lama project; as the third step, the two companies will assess other investment opportunities in the promising El Indio ore belt on the border between Argentina and Chile.