Engineering & Mining Journal

OCT 2018

Engineering and Mining Journal - Whether the market is copper, gold, nickel, iron ore, lead/zinc, PGM, diamonds or other commodities, E&MJ takes the lead in projecting trends, following development and reporting on the most efficient operating pr

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NEWS-LEADING DEVELOPMENTS 4 E&MJ • OCTOBER 2018 Barrick, Randgold Will Join Forces Barrick Gold and Randgold Resources announced the two will merge to create the biggest gold mining company in the world in a transaction valued at $18.3 million. Under the terms of the deal, Barrick will own approximately 66.6% of the New Barrick Group, while Randgold will own approximately 33.4%. The trans- action is expected to close the first quar- ter of 2019. The transaction will create an indus- try-leading gold company with the great- est concentration of tier-one gold assets in the industry, led by a proven management team of owners, the companies said. Tier-one gold assets include the Cortez, Goldstrike, Kibali (45%), Lou- loGounkoto (80%) and Pueblo Viejo (60%) projects; and assets with the po- tential to become tier-one gold assets include Goldrush/Fourmile and Turquoise Ridge (75%). "The combination of Barrick and Randgold will create a new champion for value creation in the gold mining in- dustry, with a proven management team that has consistently delivered among the best shareholder returns in the gold sector over the past decade," said John L. Thornton, executive chairman of Bar- rick. "Our overriding measure of success will be the returns we generate and not the number of ounces we produce, bal- ancing boldness and prudence to deliver consistent and growing returns to our fel- low owners, a truly simple but radical and achievable concept." CEO of Randgold Mark Bristow said the merged company will focus on de- livering sector-leading returns. "By em- ploying a strategy similar to the one that proved very successful at Randgold, but on a larger scale, the New Barrick Group will leverage some of the world's best mines and talent to create real value for all stakeholders," he added. Thornton will become executive chair- man of the New Barrick Group; Bristow will become president and CEO of the New Barrick Group; and Graham Shuttle- worth, finance director and CFO of Rand- gold, will become senior executive vice president and CFO of the New Barrick Group; and Kevin Thomson, senior exec- utive vice president, strategic matters of Barrick, will become senior executive vice president, strategic matters of the New Barrick Group. Two-thirds of the directors of the board of the New Barrick Group will be nominated by Barrick, and one-third will be nominated by Randgold. Newmont is Ranked Mining Sector Leader Newmont Mining Corp. announced that for a fourth year in a row, the company was named the metals and mining sector leader by the Dow Jones Sustainability World Index (DJSI World). Newmont was the first gold company named to the in- The New Barrick will have extensive land positions in many of the world's prolific gold districts. The New Barrick will have a diversified platform in key mining jurisdictions.

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