Newmont Mining Corp.
agreed to purchase rival Canadian gold producer Goldcorp Inc
in an all-stock transaction the companies valued at $10 billion, intensifying a consolidation wave amongst global miners as they compete for a dwindling provide of easy-to-find gold.
The transfer comes on the heels of one other mining blockbuster: Canada’s Barrick Gold Corp. agreed to purchase Randgold Resources Ltd. for $6 billion in an all-share merger final September.
The depletion of global gold mines, and the ensuing increase in extraction prices, has pushed gold miners to hunt cost efficiencies, and smaller-scale combos, as they compete to seek out and exploit the world’s remaining high-grade deposits.
Newmont mentioned it will purchase every Goldcorp share for 0.3280 of their very own inventory, which represents a 17% premium to the Canadian firm’s 20-day quantity weighted common share prices.
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