Barrick open to discuss joint venture in Nevada with Newmont
Barrick Gold’s (TSX:ABX)(NYSE:GOLD) chief executive Mark Bristow said Monday he’s open to negotiate with rival Newmont about a deal to work together in Nevada, but only if his company runs the operations.
“Nevada, with a combined 76M ounces, will be worth a whole lot more if it is run by one operator,” Bristow said earlier in the day, adding that Barrick can do that more efficiently than Newmont.
“My suggestion is that Gary [Goldberg, Newmont’s CEO] gets his team up here tomorrow,” Bristow told the Financial Times. “Time is of the essence.”
Barrick had previously said that teaming up in Nevada was not “the right path” forward.
Only last week, the Canadian gold miner said teaming up in Nevada was not “the right path” forward. It noted it would not enable full realization of benefits due to duplicate administration, conflicting priorities and cumbersome governance.
Earlier in the day, Newmont Mining (NYSE:NEM) rejected the Toronto-based company’s $18 billion unsolicited acquisition offer, countering with a proposal for a joint venture (JV) in Nevada. Such deal would be worth billions of dollars and create a major operator in the largest U.S. gold-producing region.
The contra-proposal stated that the Toronto-based rival would hold a 55% interest in the Nevada JV, while the Newmont-Goldcorp merged company would have a 45% stake.
The two gold miners have held merger talks every decade or so for almost thirty years, with the last one before today’s blowing at the 11th hour in 2014.
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2 Comments
ThaOracle
What if I were to tell you ………. that any sort of “Nevada deal” is a fantasy unless Newmont somehow loses it’s collective mind and allows it’s flagship Nevada operations to be majority owned and operated by a pack of arrogant, largely incompetent Canadians also known as “Munk’s travelling mine busters”.
Fernando Costa
I am not sure “incompetent” would be the best way to describe Barrick. Last I checked they were rather successful. I am also not sure “incompetent canadians” would be the best way to make a point here. Just makes you look like a bigot.