The new business, yet to be named, will be owned 38.5% by Newmont Goldcorp and 61.5% by Barrick.
Toronto Mining News
Decision doesn't determine the final faith of the long-delayed and polemic project, as the case has been sent back to the Environmental Court for review by a different panel of judges, a process that could last several months.
Under the deal, Barrick will take a 61.5% stake in the joint venture consisting of the duo’s Nevada mines, with Newmont holding the remainder.
Chief executive Mark Bristow will discuss a potential JV with rival Newmont only if his company runs the operation.
The US mining giant also fired back with a deal that seeks merging operations in the state of Nevada.
Barrick forecasts over $7 billion in pre-tax savings over 20 years, based on net present value — $4.7 billion of which will come from Nevada.
The portfolio would include their Kalgoorlie super pit 50/50 joint-venture in Western Australia, as well as other regional assets such as Porgera, Tanami and Boddington mines.
If successful, the move will create the world’s largest gold company with a value of around $42 billion at current market prices.
The Canadian gold giant confirmed it has reviewed the opportunity to merge with the US miner in an all-share deal.
The company pinned the cost increases partly on mining ending at its low-cost Cortez Hills open pit in Nevada in the first half of the year.
Strategic alliance expands Barrick’s exploration footprint in the Guiana Shield, a significantly under-explored region and one of the most prospective in the world for large scale gold discoveries.
Barrick now trades as GOLD in New York and continues as ABX in Toronto.
The planned merger, which creates the world's top gold miner by value and output, has been approved by the Royal Court of Jersey.
The Toronto-based company, which already owns 15% of Reunion, said the fresh $2.27-million investment leaves its stake in the Quebec-based miner unchanged.
Experts believe the US firm could achieve $300 million in operating and cost savings from combining its mines in Nevada with those of the Canadian rival.
The gold miner has given up on Kumtor and decided to focus its efforts on completing a deal for Armenia-based Kapan Mining instead
The combined miner plans to focus on Tier 1 assets, those producing at least 500,000 ounces of gold annually, with a mine life of more than 10 years and low costs.
The new Barrick, which will be listed in New York and Toronto, will own five of the world's 10 lowest cost gold mines and will be the world's top bullion producer by both value and output.
Company won’t have to cut output at its central BC-based copper-gold mine, at least for now, as it has been granted approval to use certain short-term water sources.
The Central Asia-focused explorer and developer said Tulkubash’s measured and indicated resource is now over 1.4 million ounces of gold, while the grade also rose 57% to 1.35g/t gold.
Junior continues to pursue $800-million acquisition of Centerra Gold's Kumtor mine in Kyrgyzstan.
Extension of the deadline, the fifth one so far this year, seeks reaching final agreement that would end long-running dispute over the country’s largest gold mine.
Fresh setback for the company’s Solwara 1 project, expected to be the world’s first seabed gold, copper, silver mine.
The parliament’s revision of the strategic agreement, set for September, may lead to increased environmental payments for the Canadian miner.
Deadline for fulfillment of all conditions included in agreement with the Kyrgyz government, which would end all disputes over the firm’s Kumtor gold mine, has been pushed back about a month.