Barrick Gold goes after Newmont to create mining giant

NEW YORK -- Barrick Gold will try to acquire Newmont Mining Corp. in an all-stock deal that would create a mining behemoth worth about US$42 billion.

Newmont, based in Colorado, has shunned the Canadian miner so far, and the latest overture could become hostile.

Under the proposal, Newmont stockholders would receive 2.5694 Barrick shares for each share they own.

Barrick shareholders would own about 55.9 per cent of the combined business, with Newmont shareholders owning approximately 44.1 per cent.

Barrick President and CEO Mark Bristow said that the two companies have highly complementary assets in Nevada, which includes Barrick's mineral endowments and Newmont's processing plants and infrastructure.

Barrick Gold Corp. said Monday that Newmont should terminate its ongoing effort to buy Goldcorp. Newmont offered $10 billion for the Canadian miner last month.

Miners are consolidating as gold becomes more expensive to procure. Barrick just a few months ago said it's buying Randgold for more than $6 billion.

Newmont's stock rose 1.3 per cent before the market open.

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