Loading ...Barrick Mining (B) said Monday it reached an agreement with Newmont (NEM) on their Nevada joint venture, in which Barrick’s Fourmile and Newmont’s Fiberline and Mike projects will contribute to the JV, resolving all outstanding disputes between the partners and allowing Barrick to list its North American assets in New York.
Newmont (NEM) also will make a one-time payment to Barrick (B) of $1.95B, reflecting the additional value of the Fourmile asset, which Barrick has said could produce up to 750K oz/year of gold.
The two mining giants, which already partner on the Nevada Gold Mines venture, had been locked in a dispute as Newmont (NEM) tried to block Barrick’s (B) plans for a separate listing of its North American assets, including the JV.
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Nevada Gold Mines provides around half of Barrick’s (B) gold production and profits, but the U.S.-based assets are more highly prized by investors than the company’s mines in Africa.
“Newmont has consented to the IPO and the parties have agreed to expand NGM with the earlyvend-in of our excluded properties, as well as settling all disputes,” said Barrick (B) President and CEO Mark Hill, who will also become CEO of the new company upon separation.