28/08/07: Barrick-Newmont takeover rumors gather wind

Barrick gold, the world's largest gold-mining firm, was yesterday rumored once again to be on the verge of taking over Denver-based Newmont Mining.

Newmont shares closed yesterday (August 28th) up 1.5 per cent, amid unusual call buying activity, which, according to Reuters, could signal an imminent takeover by its Canadian counterpart.

Barrick Gold saw its stocks fall by 3.1 per cent yesterday on the S&P/TSX Composite Index, while senior figures at Barrick firmly denied the rumors.

Senior vice president Vince Borg was adamant in his response. "We previously said that this rumor had no substance to it, and again today that remains very much the case," he said in an interview with Reuters.

Meanwhile both firms will be concerned for the safety of a miner trapped yesterday at the Getchell Mine, Nevada, jointly owned by the two gold mining companies.

The US Mine Safety and Health Administration said that the man was trapped by a cave-in at the underground gold mine near Winnemuca.

The roof fell in on the worker as he operated a roof bolter, prompting the dispatch of two mine rescue teams.