Newmont Mining To Buy Goldcorp In $10 Billion Deal To Create World’s Largest Gold Miner

Newmont Mining To Buy Goldcorp In $10 Billion Deal To Create World’s Largest Gold Miner from ZeroHedge

TDC Note – When we were publishing / producing / creating the Shadow of Truth broadcast this was discussed regularly. My argument was always, and remains to be, these behemoth gold mining operations must begin eating themselves and the smaller R/D miners as the large deposits are all gone. A miner finding a 10 million ounce deposit is considered a large find, where as 20 years ago, for someone like Goldcorp or Newmont they would leave it in the hands of the smaller players. Today they will buy that mine before the ink on the 43-101 dries.

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In the latest deal in what’s becoming a wave of consolidation among gold miners, Newmont Mining announced on Monday that it would buy smaller miner Gold Corp in a deal valued at $10 billion.

The deal could create the largest gold miner in the world, with operations stretching from the Americas, to Australia and Ghana, the companies said. Newmont will offer 0.3280 of its share and two cents for each share of its Canadian rival, according to  CNBC. The deal is the largest in the space since Randgold and Barrick announced their plans to merge back in September.

As the Wall Street Journal pointed out, the depletion of global gold mines and the resulting increase in extraction costs has pushed gold miners to seek cost efficiencies and smaller-scale combinations.

“The strategic rationale for combining Goldcorp with Newmont is powerfully compelling on many levels.” Goldcorp Chief Executive Officer David Garofalo said in a statement. Goldcorp shares climbed 1.3% in premarket trading on the news. The GDX, an ETF of gold miners, also climbed on the news.

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