Goldcorp has announced overwhelming shareholder approval for merger with Newmont Mining.

TAMApr11 img06The merger, whereby Newmont will acquire all outstanding common shares of Goldcorp, was approved by almost 97 per cent of votes cast by Goldcorp shareholders.

Newmont and Goldcorp expect the transaction to close in the second quarter of 2019, subject to approval by Newmont shareholders and the satisfaction of customary closing conditions and regulatory approvals.

Immediately upon the closing of this transaction, Newmont Goldcorp is expected to target 6-7 million ounces of steady-state gold production over a decades-long time horizon, as well as commence delivering a combined US$365 million in expected annual pre-tax synergies, supply chain efficiencies and Full Potential improvements representing the opportunity to create US$4.4 billion in Net Present Value (pre-tax).

The merger will create Newmont Goldcorp to hold the largest gold reserves and resources in the gold sector, including on a per share basis, and offer financial flexibility and an investment-grade balance sheet to advance the most promising projects generating a targeted Internal Rate of Return (IRR) of at least 15 per cent.

Newmont has several operations in Australia, including the Boddington gold-copper mine and the Kalgoorlie Super Pit, which is a joint venture with Barrick Gold.

Barrick attempted to acquire Newmont for $US18 million earlier this year, but this was rejected in favour of a JV between the two companies in the state of Nevada, worth a combined value of $US5 billion.

Source:  www.goldcorp.com

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