As per the deal, Barrick will 50% stake in the project to Ma’aden for $210m in cash.
Subject to customary closing conditions, the transaction is expected to be completed in the fourth quarter of 2014.
Barrick president and CEO Jamie Sokalsky said: "This joint venture will enable the Jabal Sayid project to move forward with the benefit of Ma’aden’s extensive experience in the Saudi Arabian mining sector, combined with Barrick’s technical and operating expertise."
"Once in production, Jabal Sayid will be a high-quality, low-cost underground copper mine capable of generating substantial free cash flow, while providing benefits for local communities through training, employment and economic development."
The company gained control of the mine through its acquisition of Equinox Minerals in 2011.
Located 120kms southeast of Medina, the mine would produce about 130 million pounds of copper during its first full five years of operation.
Based on 1.4 billion pounds of copper in proven and probable reserves, the mine is estimated to operate for up to 15 years.
Image: Barrick Gold and Ma’aden officials at the signing of a partnership agreement. Photo: courtesy of Saudi Arabian Mining Company.
