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.

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Perfect Storm Group pushes for community-owned and operated primary care facility

Seeks proposals for development of feasibility study for ’Oceanside Campus of Healthcare’

RCMP arrest suspect after attempted break-and-enter in Parksville

Resident provides description, cops nab 46-year-old man

B.C. records four new COVID-19 cases, Abbotsford hospital outbreak cleared

Four senior home outbreaks also declared over, eight still active

Young killer whale untangles itself from trap line off Nanaimo shore

DFO marine mammal rescue unit arrived as whale broke free from prawn trap line

Facing changes together: Your community, your journalists

The COVID-19 pandemic has changed the world in ways that would have… Continue reading

Friendly Cove and Kyuquot will remain closed until further notice

Transition of other B.C. communities will be monitored before a decision to ease restrictions

RCMP, coroner investigate murder-suicide on Salt Spring Island

Two dead, police say there is no risk to the public

Gold River organizes a shop local initiative to creatively boost economy

Local purchases can earn shoppers $200 gift certificates to be spent on businesses within Gold River

About 30% of B.C. students return to schools as in-class teaching restarts amid pandemic

Education minister noted that in-class instruction remains optional

Trudeau avoids questions about anti-racism protesters dispersed for Trump photo-op

Prime minister says racism is an issue Canadians must tackle at home, too

Most Read