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:
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Historic joint venture designed to unlock $5-billion in synergies;
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Barrick to be operator;
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Ownership to be 61.5 per cent Barrick; 38.5 per cent Newmont;
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Board representation based on ownership;
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Advisory committees to have equal representation;
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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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