The talks between Barrick Gold Corp and Newmont Mining Corp over a combination that would create a gold mining behemoth have hit a snag, but two sources close to the situation say the companies remain keen on a deal and discussions are likely to resume. The talks had been on for a few weeks and the two sides had broadly agreed to a transaction that would see Barrick acquire Denver-based Newmont in an all-stock deal, said one source close to the matter, adding that the deal would offer Newmont shareholders a slight premium to its current share price.The sources, who asked not to be named due to the sensitive nature of the situation, said the talks have hit a snag around the spin-out of certain assets from the combined entity, among other issues.Following the close of the tentative deal, shareholders in the combined entity would also get shares in a new company that is likely to include assets in Australia and in New Zealand. But the final mix of assets in the spun out entity has not yet been agreed upon said one source, adding that new entity could include some assets from outside that region.The companies are also contemplating selling certain non-core assets that are not included in the spun out new entity, said one source.
Barrick Gold Corporation (Barrick) is engaged in the production and sale of gold, as well as related activities, such as exploration and mine development. Shares of ABX fell by 1.86% or $-0.34/share to $17.98. In the past year, the shares have traded as low as $13.43 and as high as $21.70. On average, 12822200 shares of ABX exchange hands on a given day and today's volume is recorded at 8633625.
Barrick Gold Corporation (Barrick) is engaged in the production and sale of gold, as well as related activities, such as exploration and mine development. Shares of ABX fell by 1.88% or $-0.38/share to $19.81. In the past year, the shares have traded as low as $14.22 and as high as $23.78. On average, 3195800 shares of ABX.TO exchange hands on a given day and today's volume is recorded at 2319077.
Newmont Mining Corporation, is primarily a gold producer with operations and/or assets in the United States, Australia, Peru, Indonesia, Ghana, New Zealand and Mexico. Shares of NEM fell by 0.88% or $-0.21/share to $23.54. In the past year, the shares have traded as low as $20.79 and as high as $35.44. On average, 10043400 shares of NEM exchange hands on a given day and today's volume is recorded at 5468587.
Source
