Newmont offers $1.5B for Miramar
Newmont Mining Corp. of Denver, Colo., has struck a deal to acquire Vancouver-based Miramar Mining for Cdn$6.25 cash per share for all outstanding shares. The plan puts a nominal value of Cdn$1.5 billion on Miramar, and is recommended by Miramar directors.
In November 2005, Newmont acquired a 9.9% interest in Miramar. Now Newmont seeks ownership of Miramar’s Hope Bay Gold project on the Arctic coast of Nunavut. Miramar has estimated that the numerous deposits contain over 5.2 million oz of gold. (That makes the cost of acquiring this amount of gold in the neighbourhood of US$290 per oz.)
Tony Walsh, president and CEO of Miramar, said, “We believe Newmont’s offer takes into account the value of the existing resources at Hope Bay along with the significant upside potential. I firmly believe this is a world class project and that its value will continue to be realized under the direction of Newmont, a world class gold mining company.” To examine the Hope Bay gold project in detail, visit www.MiramarMining.com. For details of Newmont’s offer for Miramar, see www.Newmont.com.
FNX buys up Dynatec’s mining services
FNX Mining of Toronto has exercised its right to purchase from Sherritt International (also of Toronto) the Dynatec mining services division for Cdn$53 million. The business includes the Canadian Mining Services Division and Dynatec Mining Corp. in the United States.
FNX president and CEO John Lill said, “This acquisition provides FNX with a pool of highly skilled and experienced supervisory, mining and technical employees to support FNX’s ambitious growth plans at our Sudbury operations and also adds the capability to become joint-venture partners or mining operators in select mining development projects.”
The acquisition closed in mid-October, following satisfaction of customary conditions. Sherritt originally acquired Dynatec’s mining services business in connection with its acquisition of Dynatec Corp., completed on June 14, 2007. Notably, Sherritt gained control of the Ambatovy nickel project in Madagascar through this acquisition.
Learn more about FNX’s success in the Sudbury Basin of Ontario by visiting www.FNXmining.com.