Business
Newmont to Acquire Miramar Mining for C$6.25 Cash Per Share; Miramar Board to Unanimously Recommend Offer
Newmont to Acquire Miramar Mining for C$6.25 Cash Per Share; Miramar Board to Unanimously Recommend Offer.
About this update from New Found Gold Corp
[{"type":"text","content":"\n\n\n\nDENVER and VANCOUVER, British Columbia, Oct. 9 /CNW/ -- Newmont Mining\nCorporation (NYSE: NEM) and Miramar Mining Corporation (TSX: MAE; Amex: MNG)\nannounced today that they have entered into a definitive support agreement\nthat provides for the acquisition by Newmont, with the unanimous support of\nthe Miramar board of directors, of all the outstanding common shares of\nMiramar for C$6.25 cash per common share. The acquisition will be effected\nthrough a take-over bid, the full details of which will be contained in\nNewmont's take-over bid circular that is expected to be mailed to Miramar\nshareholders by the end of October. The transaction values Miramar at\napproximately C$1.5 billion on a fully-diluted basis. The offer represents a\npremium of approximately 29% over Miramar's 20-day volume weighted average\ntrading price on the TSX through October 5, 2007.\n\n\nThe board of directors of Miramar has unanimously determined that the\noffer to be made by Newmont is fair and that it will recommend that\nshareholders tender to the offer. Miramar has received opinions from BMO\nCapital Markets and Paradigm Capital Inc. that, subject to the limitations and\nqualifications stated in such opinions, the consideration to be received under\nthe offer is fair, from a financial point of view, to Miramar shareholders.\nAll of the directors and senior officers of Miramar have entered into written\nagreements to accept Newmont's offer and to tender their shares to the take-\nover bid.\n\n\nRichard O'Brien, Chief Executive Officer and President of Newmont, said,\n"We made an initial investment in Miramar in 2005 because we saw the potential\nstrategic opportunity offered by the Hope Bay Project as part of our broader\nexploration and growth portfolio. We have been impressed with the progress of\nthe Project since that time, and believe that, as a result of its scale, the\ntrue potential of the Project can best be realized with the additional\nexpertise and resources of a global gold company like Newmont. Consistent with\nour strategic focus on exploration and project development, this transaction\nrepresents the next logical step for this world class resource. This\ntransaction further emphasizes our focus on our core gold business while\nproviding opportunities for sustainable, lower cost production and future\nreserve replacem...