GATADon't Let ABX Acquire NG before ...https://www.newswire.ca/en/releases/archive/August2006/14/c5523.html
Attention Business Editors:
Don't Let Barrick Acquire NovaGold before Closing Gold Short, GATA Says
MANCHESTER, CONN., August 14 /CNW/ - Barrick Gold Corp.'s attempt to
acquire NovaGold Resources Inc. at a huge discount to the value of the latter
company's metal in the ground is the next battlefield in the struggle to
liberate the price of gold, the Gold Anti-Trust Action Committee says.
Barrick's short position of about 12 million ounces of gold, believed to
have been borrowed from central banks, long has been a major suppressing force
against the gold price and against the price of gold mining shares, GATA says.
Meanwhile, according to GATA, NovaGold is believed to have access to as much
as 50 million ounces of gold at its Donlin Creek property in Alaska and
another 18 million or more ounces at its Galore Creek property in British
Columbia. Galore Creek is also estimated to hold 13.4 billion pounds of
copper.
If Barrick acquires NovaGold without first substantially reducing its
short position in gold, GATA says, the gold price will remain suppressed along
with the price of gold mining shares. But, GATA adds, if Barrick is forced
into a substantial reduction of its short position before acquiring NovaGold,
the gold price may rise sharply and take mining shares with it.
GATA notes that much of the increase in the price of gold in recent years
has been attributed to the reduction of hedges, the closing of short
positions, by gold producers. Further, defending itself against the gold
price-fixing lawsuit brought by coin and bullion dealer Blanchard & Co. in
U.S. District Court in New Orleans, Barrick claimed in 2003 that it is the
agent of central banks in the gold market and should share their immunity from
suit.
A copy of Barrick's claim to be an agent of central banks in the gold
market can be found on the Internet here:
https://www.lemetropolecafe.com/img2003/memoformotiontodis.pdf
Barrick has offered to pay $14.50 per share for NovaGold, which lately
has been trading above $16.50.
GATA urges NovaGold shareholders not to tender their shares to Barrick
before Barrick closes its short position in gold. GATA also urges advocates of
a free market in gold to purchase NovaGold shares as long as Barrick maintains
its short position. These, GATA says, may be the strongest blows that can be
struck right now against the gold price suppression scheme.
GATA's appeals to oppose NovaGold's acquisition by Barrick can be found
on the Internet here:
https://www.gata.org/node/4302
and here:
https://www.gata.org/node/4296
GATA is a non-profit civil rights and educational organization
established in 1999 to expose and oppose price-fixing in the precious metals
markets. It has 3,000 supporters around the world. It is recognized by the
U.S. Internal Revenue service as tax-exempt under Section 501-c-3 of the U.S.
Internal Revenue Code and so donations to the organization are federally
tax-deductible in the United States.
More information about GATA can be found on the Internet here:
https://www.gata.org
For further information: Gold Anti-Trust Action Committee Chris Powell,
860-646-0500, ext. 307 CPowell@GATA.org https://www.gata.org