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Newmont and Goldcorp to join forces on 18 April

The Minister of Innovation, Science and Economic Development Canada has cleared Newmont and Goldcorp to proceed with their combination.

With this approval, Newmont and Goldcorp can now move forward with closing the transaction.

Mexico’s Competition Commission approved the combination in March, following clearance from the Canadian Competition Bureau and the Korea Fair Trade Commission in February.

“With the overwhelming support of both companies’ shareholders and the necessary regulatory approvals in hand, we will close the transaction on April 18th,” says Gary Goldberg, CEO.

“We are grateful to our employees, shareholders, partners and government stakeholders for their support and cooperation throughout this process.”

Following transaction close, Newmont Goldcorp will continue trading on the NYSE with the ticker ‘NEM’ and will begin trading on the TSX with the ticker ‘NGT.’

Goldcorp’s common shares will be de-listed from the exchanges following closing.

Immediately upon transaction close, which is expected on April 18, Newmont Goldcorp will:

  • Be accretive to Newmont’s Net Asset Value per share by 27%, and to the combined company’s 2020 cash flow per share by 34%;
  • Begin delivering $365 million in expected annual pre-tax synergies, supply chain efficiencies and Full Potential improvements, representing $4.4 billion in Net Present Value (pre-tax);
  • Target six to seven million ounces of steady gold production over a decades-long time horizon;
  • Have the largest gold Reserves and Resources in the gold sector, including on a per share basis;
  • Be in favorable mining jurisdictions and prolific gold districts on four continents;
  • Deliver the highest dividend among senior gold producers;
  • Offer financial flexibility and an investment-grade balance sheet to advance the most promising projects at an Internal Rate of Return (IRR) of at least 15%;
  • Feature a deep bench of accomplished business leaders, technical teams and other talent with extensive mining industry experience; and
  • Maintain industry leadership in environmental, social and governance performance.