Barrick Gold and Newmont Complete Joint Venture, Creating the World’s Largest Gold Complex
|Areas||Corporate and Commercial, Mergers and Acquisitions, Mining and Natural Resources|
Goodmans LLP represented Newmont Goldcorp Corporation (Newmont)in connection with its joint venture with Barrick Gold Corporation (Barrick), which combined their respective mining properties in Nevada to create the world's largest gold complex. The new joint venture, which will operate as Nevada Gold Mines, officially launched on July 1, 2019.
The joint venture is a landmark accord between the two gold mining companies, which have operated independently in Nevada for decades. Under the agreement reached earlier this year, Barrick will operate the Nevada complex and will initially hold a 61.5% ownership stake, while Newmont will own 38.5%.
Nevada Gold Mines will rank as the largest global gold-producing complex by a wide margin, with three of the world’s top 10 Tier One1 gold assets (Goldstrike/Carlin, Cortez and Turquoise Ridge/Twin Creeks) and potentially another one in the making (Goldrush). Its assets in North-eastern Nevada comprise 10 underground and 12 open pit mines, two autoclave facilities, two roasting plants, four oxide mills, a flotation plant and five heap leach operations. In 2018 these operations produced a total of 4.1 million ounces of gold. The company has a strong reserve and resource base with Proven and Probable Reserves of 48.3 million ounces; Measured and Indicated Resources of 27.4 million ounces; and a further 7.5 million ounces of Inferred Resources with still more potential.