Barrick Gold Corp. insists on a transfer proposal for Newmont Mining Corp, which is a transaction that would represent one of the largest mining agreements and confirms the position of the company in Toronto as the world's largest gold producer.
Barrick is working on a two-stage agreement plan that would be expected to take Newmont based on Colorado for around US $ 19 billion in stock, then turn some Newmont assets to Newing Mining Australia, according to industry sources who is familiar with the situation.
The sources, anonymous donated by The Globe because their employers were not authorized to speak publicly, warned that there were still many obstacles. One of those barriers is beneficial support from Newmont shareholders. The company aims to close its US $ 10 billion acquisition of Vancouver Goldcorp Inc mining company, which was published only last month.
Under the possible terms of the deal, Barrick would keep Newmont and Nevada mines in Newmont, while Newcrest would take over its Australian operations, which are worth billions.
The industry source said that the participation of Newcrest is still very liquid and that Melbourne-based miners take a very careful approach before committing. Barrick also takes part in talks with other Australian engineers who could eventually buy Australian assets, he added the source. Newcrest operates mines in Australia, Papua New Guinea and Indonesia.
If Barrick were trying to make a successful bid for Newmont, Goldcorp Gold's acquisition would not take place and Vancouver-based miners would continue to be an independent company. However, Barrick would be on the hook for a $ 650 million respite fee that is payable to Goldcorp.
The CIBC World Markets Inc. and a bureau investment bank in New York, M. Klein & Co are acting on behalf of Barrick in the discussions.
Newmont and Newcrest rejected comments. Barrick did not respond immediately to a request for comments.
Barrick and Newmont tried a couple around five years ago, but the discussions took place at 11 hours after both agreed to the person who would run the company and after it was. The coat of arms where the company's headquarters would be located. (Barrick insisted he was in Toronto.)
Finally, the Barrick procurement of Newmont would see the two mining giants joining Nevada. Synergies in the form of common processing facilities in Nevada are believed to be worth billions of dollars in cost savings. In comparison, when Newmont announced that she was acquiring Goldcorp, synergies were only $ 100 million a year.
Barrick closed last month his $ 6 billion bargain to acquire Randgold Resources Ltd., and Randgold Chief Executive Mark Bristow took over as Barrick CEO. Mr Bristow and the Randgold team in recent years have studied an internal procurement strategy that combined with Barrick and then acquired the Newmont, according to people who are familiar with the issue .
Before announcing the Barrick-Randgold merger in September, Barrick and Newmont spoke about combining their Nevada operations, said sources.
After about seven years of small or no activity, merger and acquisition have turned back into mining.
Thanks to deep cost cutting, tens of millions of thousands in writing and billions more in the sale of assets, many of the largest miners in a much better financial position to access large procurement. The golden bullet price recovery in the last few months that has joined about US $ 1325 adds to the sky of optimism.
In September, Barrick announced that he was taking a zero premium from Randgold and Newmont following his deal to buy Goldcorp in January.
Newmont valuation in the Thursday market was $ 18.9 billion compared to $ 23.2 billion from Barrick.