Barrick Gold CEO Mark Bristow announced March 4, 2019, that he aims to initiate urgent talks with Newmont Mining regarding a Nevada joint venture, even as Barrick progresses its $18 billion all-stock takeover proposal. Newmont rejected the offer on the same day, reaffirming its commitment to completing the Goldcorp acquisition.
The Nevada JV proposal centers on consolidating adjacent mining operations, but disagreements over control remain unresolved. Bristow stated Barrick seeks at least a 66% stake in any partnership, contrasting Newmont’s 55% proposal. The JV plan also includes Colorado assets, complicating negotiations.
Barrick intends to present its offer directly to Newmont shareholders ahead of the company’s planned spring vote on the Goldcorp deal. The proposed 2.5694-share exchange valued Newmont at $33 per share, $3.48 below its February 22 closing price. Newmont’s CEO criticized the bid as an 'egocentric' attempt to shift value from shareholders.
Newmont shares declined 6% following the offer, while Barrick rose 1.7% to C$16.62. Disagreements persist over Nevada asset valuations, with Newmont relying on public data for its estimates. Bristow suggested Newmont’s Australian operations might be sold to local firms if the takeover succeeds, citing ongoing discussions with major Australian miners.
