Barrick, Newmont mining merger nears completion; Barrick to hold 61.5 percent
The joint venture between Nevada’s two largest gold producing companies — Barrick Gold Corp. and Newmont Goldcorp — is nearing regulatory approval and will be called Nevada Gold Mines.
The Elko Daily Free Press reported May 8 that Barrick Gold Corp. chief executive Mark Bristow revealed the name during a company earnings report that morning.
According to the report, Barrick will hold 61.5 percent and Newmont Goldcorp will hold 38.5 percent of the joint venture, with Barrick operating mines that combined produced more than 4 million ounces (113.4 million grams) of gold last year.
Barrick and Newmont announced the joint venture for Nevada operations in March, after Barrick gave up a takeover bid, according to the Associated Press.
Newmont in April completed a nearly $10 billion deal to acquire Goldcorp Inc. Barrick and Randgold Resources merged in January.
According to the May 8 Elko Daily Free Press story, even as the joint venture nears closure, Bristow said a new opportunity has surfaced with a “very significant intersection” at a bore hole at its McCoy Cove exploration joint venture with Premier Gold Mines Ltd. south of Battle Mountain. Premier announced the high-grade gold discovery on April 29.
“Our geologists are definitely excited,” he said in the earnings teleconference. “This reinforces the potential of Nevada.”
According to the earnings report — you can download a PDF of it here — the joint venture transaction is expected to officially close by the end of June.