Barrick Gold, Newmont exchange Nevada assets

Thursday, Feb. 4, 1999 | 2:22 a.m.

Both companies will benefit from the consolidation of their overall land positions in the area of Barrick's Goldstrike property and Newmont's North Area and Deep Star operations, the companies said in a joint statement released at Newmont headquarters in Denver.

"Each company is transferring assets that will generate greater value when developed by the other company," they said.

Barrick's Goldstrike mine produces 70 per cent of the company's annual production of more than three million ounces of gold.

On the New York Stock Exchange Thursday, Barrick shares traded at $19.50, up 31 cents, while Newmont shares rose 50 cents to $18.44. Barrick shares fell five cents to $29.20 on the Toronto stock market.

"This exchange is a win-win situation that gives both companies increased production and exploration opportunities. It has very positive implications for share value," said Paul Melnuk, president of the Toronto-based Barrick, and Ronald Cambre, chairman of the Denver-based Newmont.

Barrick and Newmont expect the deal to be complete by the end of the first quarter.

Included in the property going to Barrick is the Goldbug deposit, with a reserve of 1,140,000 ounces, next to Barrick's Rodeo deposit on Goldstrike; and reserves of 860,000 ounces in the Betze-Post open pit.

Newmont gets, among other things, Barrick's portion of the underground Deep Post deposit, a reserve of about 450,000 ounces; Barrick's 40 per cent interest (1.2 million ounces) in the High Desert; and about 350,000 ounces in stockpiled ore.

archive