Newmont, Barrick Settle Nevada Gold Mines Disputes In $1.95 Bln Deal

(RTTNews) - Newmont Corp. (NEM, NEM.AX), an American gold mining company, on Monday announced that it has reached an agreement with Barrick Mining Corp. (B) to contribute excluded properties into their Nevada Gold Mines joint venture and to settle all outstanding disputes between the parties.

With the settlement, Newmont has formally given consent for Barrick to proceed with the proposed IPO of its North American gold assets.

Under the amended joint venture agreement, Newmont's Fiberline and Mike developments and Barrick's Fourmile development will be contributed into Nevada Gold Mines.

Newmont will pay Barrick $1.95 billion to reflect the contribution of the excluded properties.

The agreement also includes enhanced governance provisions under a modernized joint venture agreement. Newmont and Barrick said the deal positions both the companies to maximize the value of the joint venture.

The companies will continue working together to improve Nevada Gold Mines' safety and performance and to unlock the full value of the assets.

In pre-market activity on the NYSE, shares of Newmont were up 0.79 percent, changing hands at $113.88, after closing Friday's regular session 7.16 percent higher.

Barrick Mining shares fell 5.33 percent to $41.35 in pre-market trading on the NYSE, after ending Friday's regular session 5.58 percent higher.