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3/6/2019, 10:30 AM (Source: TeleTrader)
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Newmont: Initial Barrick talks 'constructive'

Newmont Mining and rival Barrick Gold's initial talks on a proposed Nevada joint venture were "constructive," the Financial Times reported on Wednesday.

Newmont's CEO Gary Goldberg and his Barrick counterpart Mark Bristow had dinner in New York on Tuesday which was the starting point for discussions on Newmont's proposed joint venture, according to Goldberg's successor Tom Palmer, who will take over the company later this year. Palmer stressed that the two sides were "very genuine about putting on the table a draft JV term sheet" ahead of shareholder meetings in London, which were being held "to get a resolution, to exercise value for shareholders."

He also said that Newmont's initial proposal for Barrick to have 55% of the joint venture and Newmont the remaining 45% was only a suggestion to initiate negotiations between the two. The proposal was rejected by Bristow earlier this week, who said that it did not reflect the value of Barrick's assets in Nevada. However, Palmer said that both Goldberg and Bristow had since had time to reflect and consider what had been proposed. In addition, he pledged that Newmont would be prepared to publish a detailed study on the potential cost savings for the two companies if the two sides could not work an agreement out.

Breaking the News / DZ