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

Nanaimo mall evacuation sparked by 15-year-old with imitation gun

Police say Monday’s ‘dynamic scene’ at Woodgrove Mall handled calmly

Worried about bats? Here’s what to do if you come across one in B.C.

Bat expert with the BC Community Bat Program urges caution around the small creatures

Vancouver Island mom headed to overseas court in bid to reclaim daughter

Nanaimo’s Tasha Brown says her estranged wife abducted their daughter Kaydance Etchells in 2016

Wolves not gnawing into Island’s prey population

Forestry practices, not predation, blamed for reduced numbers in prey animals

South Island nursery cleared to sell ‘less than half’ of plants following sweeping quarantine

Single plant found with infected spores on July 3 put 100,000 plants at risk

VIDEO: Reports say Lashana Lynch is the new 007

Daniel Craig will reprise his role as Bond one last time

Victoria businesses remain plastic-bag free, despite court ruling

Business association says no one has inquired into re-establishing the use of plastic bags

Bathtubbing’s ‘Mom’ honoured for a lifetime supporting the sport

Longtime Nanaimo volunteer Margaret Johnson depicted on souvenir coins and named parade marshal

South Island’s Deep Cove Chalet set to re-open following fire

North Saanich eatery says July 24 will be ‘business as normal’ following rebuild

Crash Test Dummies bring their musical storytelling to Vancouver Island in August

25th anniversary of God Shuffled His Feet celebrated with concerts in Sidney, Nanaimo and Courtenay

B.C. on right road with tougher ride-hailing driver rules, says expert

The provincial government is holding firm that ride-hailing drivers have a Class 4 licence

B.C. Ferries cancels two sailings Monday due to mechanical issues

Tsawwassen to Swartz Bay run affected in order to repair Queen of New Westminster

RCMP investigating alleged ‘sexual misconduct’ by cyclist on BCIT campus

BCIT said they were reviewing video evidence of the incident

New home cost dips in B.C.’s large urban centres

Victoria, Kelowna, Vancouver prices decline from last year

Most Read