18:58:16 EDT Thu 28 Mar 2024
Enter Symbol
or Name
USA
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Barrick Gold Corp
Symbol ABX
Shares Issued 1,751,981,799
Close 2019-03-11 C$ 17.69
Market Cap C$ 30,992,558,024
Recent Sedar Documents

Barrick Gold, Newmont to form joint venture

2019-03-11 16:12 ET - News Release

Mr. Mark Bristow reports

BARRICK AND NEWMONT FORGE NEVADA JOINT VENTURE AGREEMENT

Barrick Gold Corp. and Newmont Mining Corp. have signed an implementation agreement to create a joint venture combining their respective mining operations, assets, reserves and talent in Nevada. All amounts expressed in United States dollars.

Highlights:

  • Historic joint venture designed to unlock $5-billion in synergies;
  • Barrick to be operator;
  • Ownership to be 61.5 per cent Barrick; 38.5 per cent Newmont;
  • Board representation based on ownership;
  • Advisory committees to have equal representation;
  • Barrick to withdraw Newmont acquisition and annual general meeting proposals.

The joint venture is a 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 co-operation. The joint venture will allow them to capture an estimated $500-million in average annual pretax synergies in the first five full years of the combination, which is projected to total $5-billion pretax net present value over a 20-year period.

Barrick president and chief executive officer Mark Bristow said the agreement marked the successful culmination of a deal that had been more than 20 years in the making.

"We listened to our shareholders and agreed with them that this was the best way to realize the enormous potential of the Nevada goldfields' unequalled mineral endowment, and to maximize the returns from our operations there. 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," he said.

Gary Goldberg, chief executive officer of Newmont, said the logic of combining the two companies' operations was compelling.

"This agreement represents an innovative and effective way to generate long-term value from our joint assets in Nevada, and represents an important step forward in expanding value creation for our shareholders. Through the joint venture, we will also continue to pursue the highest standards in safety, along with responsible and meaningful engagement with our employees, communities and other stakeholders," he said.

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 1 assets, potentially another one in the making, and 48 million ounces of reserves.

The establishment of the joint venture is subject to the usual conditions, including regulatory approvals, and is expected 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.

As a result of this agreement, Barrick has withdrawn its Newmont acquisition proposal announced on Feb. 25, and its proposals for the Newmont annual general meeting submitted on Feb. 22.

Joint conference call and webcast

Please join the company for a conference call and webcast to discuss the joint venture agreement today at 9 a.m. ET (6 a.m. PT, 1 p.m. GT). There will be an opportunity for analysts and investors to ask questions during the question and answer following the presentation.

United States and Canada (toll-free):  1-855-327-6838

United Kingdom (toll-free):  0808-101-2791

International:  1-416-915-3239 or 1-604-638-5340

Webcast:  On-line

The webcast will remain on-line for replay, and the conference call will be available for replay by telephone at 1-855-669-9658 (U.S. and Canada) and 1-604-674-8052 (international), access code 3028.

We seek Safe Harbor.

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