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

Like us on Facebook and follow us on Twitter.

Just Posted

Group finds B.C. Archives collection licences costs prohibitive

Teachers asked to pay $25 per image to use on slideshows

Protective human chain to form around Victoria mosque for Friday prayer

Islanders invited to stand arm-in-arm to show support in aftermath of New Zealand shootings

Saanich council approves rural subdivision despite staff and public opposition

Critics say it will lead to urban sprawl, while supporters cite the need for housing

Coalition campaigns to build new West Shore skate park

Group seeks $25,000 in donations for park proposed for near the Juan de Fuca rec centre

VIDEO: Restaurant robots are already in Canada

Robo Sushi in Toronto has waist-high robots that guide patrons to empty seats

Greater Victoria Wanted List for the week of March 19

Greater Victoria Crime Stoppers is seeking the public’s help in locating the… Continue reading

POLL: When do you think the next major earthquake will hit Vancouver Island?

According to seismologists, Vancouver Island is overdue for a magnitude 7 earthquake.… Continue reading

China chemical plant blast kills 47, injures hundreds more

This is one of China’s worst industrial accidents in recent years

Montreal priest stabbed while celebrating morning mass

The incident happened Friday morning at Montreal’s St. Joseph’s Oratory

Organic Matters tea recalled across B.C. due to Salmonella

Recall for OM tea products is B.C. wide, possibly national.

Permit rejected to bring two cheetahs to B.C.

Earl Pfeifer owns two cheetahs, one of which escaped in December 2015

Real-life tsunami threat in Port Alberni prompts evacuation updates

UBC study says some people didn’t recognize the emergency signal

Care providers call for B.C. seniors’ watchdog to step down

The association also asks the province to conduct an audit and review of the mandate of her office

Most Read