Barrick Gold and Newmont Goldcorp: Nevada Joint Venture Deal Clears All Regulatory Conditions
NEW YORK, April 22, 2019 (GLOBE NEWSWIRE) -- Barrick Gold Corporation (NYSE:GOLD)(TSX:ABX) (“Barrick”) and Newmont Goldcorp Corporation (NYSE:NEM)(TSX:NGT) (“Newmont Goldcorp”) today announced that their joint venture in Nevada, which will create the world’s largest gold producing complex, has cleared all the regulatory conditions required for its completion.
The U.S. Federal Trade Commission granted an early termination of the waiting period under the Hart-Scott-Rodino Act on April 19, 2019.
The new business, yet to be named, will be owned 61.5% by Barrick and 38.5% by Newmont Goldcorp, and will be operated by Barrick. The operations making up the joint venture produced in excess of 4 million ounces of gold in 2018, more than three times the next largest gold mine.
Barrick President and Chief Executive Officer, Mark Bristow, said that practical measures required to integrate the joint venture assets and establish the new business are now being taken and are anticipated to be complete within the current quarter.
“The joint venture agreement represents a historic accord between our companies that will unlock the enormous geological potential of the Nevada goldfields and maximize its many value-creating opportunities,” Bristow said.
Gary Goldberg, Newmont Goldcorp’s chief executive officer, said, “By combining our operations and assets in Nevada we will be able to extend profitable production, lower costs and create new opportunities for our stakeholders in the region.”
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Cautionary Statement on Forward-Looking Information
Certain information contained in this press release, including any information as to Barrick’s strategy, plans, or future financial or operating performance, constitutes “forward-looking statements”. All statements, other than statements of historical fact, are forward-looking statements. The words “will”, “anticipate”, “unlock”, “potential”, “opportunities” and similar expressions identify forward-looking statements. In particular, this press release contains forward-looking statements including, without limitation, with respect to: the proposed Nevada joint venture and the expected impact of such a transaction, including estimates of the proposed Nevada joint venture’s annual gold production and other value-creating opportunities (including estimated synergies and financial benefits); and the expected timing for the establishment and scope of the proposed Nevada joint venture, including satisfaction of closing conditions.
Forward-looking statements are necessarily based upon a number of estimates and assumptions; including material estimates and assumptions related to the factors set forth below that, while considered reasonable by Barrick as at the date of this press release in light of management’s experience and perception of current conditions and expected developments, are inherently subject to significant business, economic, and competitive uncertainties and contingencies. Known and unknown factors could cause actual results to differ materially from those projected in the forward-looking statements, and undue reliance should not be placed on such statements and information. Such factors include, but are not limited to: fluctuations in the spot and forward price of gold, copper, or certain other commodities (such as silver, diesel fuel, natural gas, and electricity); the ability to realize the anticipated benefits of the proposed joint venture or implementing the business plan for the proposed joint venture, including as a result of a delay in its completion or difficulty in integrating the Nevada assets of the companies involved; the risk that the conditions to formation of the proposed joint venture will not be satisfied; the risk that the focus of management’s time and attention on the proposed joint venture may detract from other aspects of the respective businesses of Barrick and Newmont Goldcorp; the risks associated with each of Barrick’s and Newmont Goldcorp’s brand, reputation and trust; the speculative nature of mineral exploration and development; changes in mineral production performance, exploitation, and exploration successes; diminishing quantities or grades of reserves; changes in national and local government legislation, taxation, controls, or regulations and/or changes in the administration of laws, policies, and practices, expropriation or nationalization of property and political or economic developments in Canada and the United States; timing of receipt of, or failure to comply with, necessary permits and approvals; failure to comply with environmental and health and safety laws and regulations; litigation; increased costs, delays, suspensions, and technical challenges associated with the construction of capital projects; operating or technical difficulties in connection with mining or development activities, including geotechnical challenges, and disruptions in the maintenance or provision of required infrastructure and information technology systems; local and global political and economic conditions; contests over title to properties, particularly title to undeveloped properties, or over access to water, power, and other required infrastructure; employee relations including loss of key employees; increased costs and physical risks, including extreme weather events and resource shortages, related to climate change; and availability and increased costs associated with mining inputs and labor. In addition, there are risks and hazards associated with the business of mineral exploration, development, and mining, including environmental hazards, industrial accidents, unusual or unexpected formations, pressures, cave-ins, flooding, and gold bullion, copper cathode, or gold or copper concentrate losses (and the risk of inadequate insurance, or inability to obtain insurance, to cover these risks).
Many of these uncertainties and contingencies can affect our actual results and could cause actual results to differ materially from those expressed or implied in any forward-looking statements made by, or on behalf of, us. Readers are cautioned that forward-looking statements are not guarantees of future performance. All of the forward-looking statements made in this press release are qualified by these cautionary statements. Specific reference is made to the most recent Form 40-F/Annual Information Form on file with the SEC and Canadian provincial securities regulatory authorities for a more detailed discussion of some of the factors underlying forward-looking statements, and the risks that may affect Barrick’s ability to achieve the expectations set forth in the forward-looking statements contained in this press release.
Barrick disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by applicable law.