Canada’s Barrick Gold (TSX:ABX)(NYSE:GOLD) has officially dropped its hostile takeover offer for U.S. rival Newmont Mining (NYSE:NEM) in favour of a friendly deal to create a joint-venture that will combine the two companies’ assets in Nevada.
The world’s two biggest gold miners have operated independently in Nevada for decades, but had been unable to reach an agreement on a way to co-operate until now.
“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,” Barrick chief executive Mark Bristow said in statement.
Under the deal, Barrick will take a 61.5% stake in the JV with Newmont holding the remainder.
More to come…
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