logo
Plus   Neg
Share
Email

Barrick Gold, Newmont Mining Agree To Create Nevada Joint Venture - Quick Facts

Barrick Gold Corp. (GOLD,ABX.TO) and Newmont Mining Corp. (NEM) said today that the two companies have signed an implementation agreement to create a joint venture that will combine their respective mining operations, assets, reserves, and talent in Nevada.

The joint venture is an historic accord between the two gold mining companies, which have operated independently in Nevada for decades, but have previously been unable to agree terms for cooperation.

"We are finally taking down the fences to operate Nevada as a single entity in order to deliver full value to both sets of shareholders, as well as to all our stakeholders in the state, by securing the long-term future of gold mining in Nevada," Barrick President and Chief Executive Officer Mark Bristow said.

According to Barrick Gold and Newmont Mining, the joint venture will allow them to capture an estimated $500 million in average annual pre-tax synergies in the first five full years of the combination, which is projected to total $5 billion pre-tax net present value over a 20-year period.

Barrick will be the operator and also own 61.5 percent of the joint venture, while Newmont will own the remaining 38.5 percent stake. The board representation will be based on the two companies' ownership.

The two companies noted that following the completion of the joint venture, the Nevada complex will be the world's single-largest gold producer, with a pro forma output of more than four million ounces in 2018, three Tier One assets, potentially another one in the making, and 48 million ounces of reserves.

The companies expect the establishment of the joint venture, subject to regulatory approvals, to be completed in the coming months. The joint venture will exclude Barrick's Fourmile project and Newmont's Fiberline and Mike deposits, pending the determination of their commercial feasibility.

Barrick said that as a result of this agreement, it has withdrawn its Newmont acquisition proposal announced on February 25, and its proposals for the Newmont annual general meeting submitted on February 22.

For comments and feedback contact: editorial@rttnews.com

Business News

Quick Facts

Editors Pick
MillerCoors LLC has filed a lawsuit against Anheuser-Busch Companies LLC, part of Anheuser-Busch InBev, alleging that Anheuser-Busch's ad campaigns associating MillerCoors' products, Miller Lite and Coor Light, with corn syrup is "false and misleading." During the Super Bowl, ABInBev ran an advertising campaign that mocked Miller Lite and Coors Light use corn syrup in brewing. Shares of Biogen Inc. are falling almost 28 percent in Thursday's trading after the company and Japanese drugmaker Eisai Co. said they will discontinue two late-stage trials for their experimental Alzheimer's drug, Aducanumab. The two Phase 3 trials, ENGAGE and EMERGE, are multi-center, randomized, double-blind, placebo-controlled, parallel-group studies designed to evaluate Aducanumab. The European Union on Wednesday ordered Alphabet Inc.'s Google to pay an antitrust fine of 1.49 billion euros for abusing its dominant position in the online search advertising intermediation market by preventing competition. This is the third antitrust fine by the EU against Google and it represents 1.29 percent of the tech giant's turnover in 2018.
Follow RTT