Newmont Mining to buy Goldcorp to create one of world’s biggest gold producers

The deal will be worth about US$10 billion

Denver-based Newmont Mining Corp. and Goldcorp Inc. of Vancouver have agreed to combine their gold companies in a deal worth about US$10 billion.

The companies announced today that Newmont will exchange 0.328 of a share and two cents for each of Goldcorp’s outstanding common shares.

READ MORE: B.C.’s Mount Polley Mine to suspend operations due to sliding copper prices

The deal has the unanimous support of the directors of both companies but requires regulatory approvals in several countries.

The combined company would be called Newmont Goldcorp and be owned 65 per cent by current Newmont shareholders and 35 per cent by Goldcorp shareholders

Newmont CEO Gary Goldberg says the company expects to generate up to US$100 million in annualized ”synergies” before tax and operate in the Americas, Australia and Ghana.

Newmont Goldcorp will also divest between US$1 billion and $1.5 billion of assets over two years to optimize gold production of six to seven million ounces annually.

READ MORE: Court of appeal grants injunction on Taseko’s exploratory drilling in B.C. Interior

Goldcorp President and CEO David Garofalo says Newmont Goldcorp will be one of Canada’s largest gold producers, with a North American regional office in Vancouver that will oversee more than three million ounces of gold production — about half of the combined company’s projected output.

The Canadian Press

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