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Barrick Gold (T.ABX) wants Newmont (NEM) merger talk to resume: report

Stockhouse Editorial

0 Comments| April 24, 2014

The Globe and Mail reported Thursday that Barrick Gold Corp. (TSX: T.ABX,Stock Forum) has formally asked Newmont Mining (NYSE: NEM, Stock Forum) to resume merger talks after their negotiations hit an impasse late last week.

Other sources have said the North American-based gold miners had come close to agreeing on an all-stock deal, but their discussions broke down over which assets to spin out from the combined company.

Barrick shares were virtually unchanged in early trading, falling 0.15% to $19.56. Newmont was off 1.3% to $25.58.

Earlier reports have suggested that the merger talks have been driven potential cost savings up up to $1 billion in the Nevada region. But it has been said that discussions broke down over the issue of what assets should go into a spinoff company set up to host operations in Australia and New Zealand.

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