Newmont prepares big money takeover

Gold mining company Newmont is to acquire Miramar Mining in a deal worth C$6.25 per share (US $6.29), the two companies declared today.

A 'definitive support agreement' has been confirmed between the two, with Miramar's board of directors voting unanimously in favour of acquisition by Newmont and giving the green light for the sale of all outstanding shares.

A takeover bid will formally effect the acquisition, with the transaction value for Miramar agreed at C$1.5 billion (US $1.51 billion) on a fully-diluted basis, somewhat above the volume weighted average trading price for the company on the Canadian Stock Exchange through to October 5th.

Richard O'Brien, chief executive officer and president of Newmont, said that the deal would help to further the cooperation and pooled resources of the companies to date.

"We have been impressed with the progress of the project since that time, and believe that, as a result of its scale, the true potential of the project can best be realised with the additional expertise and resources of a global gold company like Newmont," he said.

Strategic benefits reported to be on offer for Newmont in carrying out the takeover include the opportunity for a new leading mining district in Miramar's sites in the Nunavut Territory of Canada.