Barrick Gold has completed its $610m gold and silver streaming deal with RGLD Gold, relating to production at Pueblo Viejo mine in the Dominican Republic.

The agreement relates to Barrick’s 60% stake in the Pueblo Viejo mine. Proceeds from the transaction will be used by Barrick to cut debt.

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Under the agreement, Barrick will sell gold and silver to Royal Gold equivalent to 7.5% of its stake in the gold produced at the mine until the delivery of 990,000oz of gold.

"This agreement allows us to strengthen our balance sheet in the short-term, while preserving material exposure to higher gold and silver prices in the future."

Following the deal, Barrick will receive ongoing cash payments equivalent to 30% of the existing spot prices from Royal Gold for the initial 550,000oz of gold, as well as 23.1 million ounces of silver delivered.

Barrick Gold president Kelvin Dushnisky said: "This innovative agreement allows us to strengthen our balance sheet in the short-term, while preserving material exposure to higher gold and silver prices in the future."

Pueblo Viejo and its associated rights are 60% owned by Barrick under the joint venture agreement with Goldcorp.

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According to Royal Gold, The deal is effective from 1 July 2015 for the gold stream, with the silver stream from 1 January 2016.

Located 100km north0west of the capital city of Santo Domingo, Pueblo Viejo mine is operated by the Pueblo Viejo Dominicana, a joint venture between Barrick (60%) and Goldcorp (40%).

Under agreement, Barrick will maintain a segregated cash collection account for receipt of dividends, as well as other distributions paid to the company by the Pueblo Viejo JV.