Newmont confirms takeover of GT Gold

Newmont (NYSE: NEM) (TSX: NGT), the world's # 1 gold mining company, is acquiring all of the shares in Canadian exploration company GT Gold (TSX-V: GTT) it does not already own in a cash transaction valued at approximately 393 C $ million (C $ 311 million). The transaction calls for the US mining giant to acquire the remaining 85.1% of GT Gold's common stock that it does not yet own for C $ 3.25 per share in cash. The amount represents a premium of 38% on the 20-day volume-weighted average price of GT Gold shares on the Toronto Stock Exchange on March 9. GT Gold's primary asset is the 47.5 hectare Tatogga gold-copper project, 100% located in traditional Tahltan Nation territory, approximately 14 km west of the Red Chris copper-gold mine in northwest British Columbia. "We are committed to building a constructive and respectful relationship with the Tahltan Nation, including the Iskut community, which is near the project, to explore this highly prospective area," said Newmont President and CEO Tom Palmer in a media statement. "We understand and recognize that Tahltan's approval is necessary in moving the Tatogga Project forward and we will work with the Tahltan Nation at all levels and with the British Columbia government to ensure a common path forward" says Palmer. The acquisition of the Tatogga Project complements Newmont's existing interest in the productive Golden Triangle with the Company’s 50% interest in the Galore Creek Project. The copper-gold project, which includes the primary Saddle North deposit, has the potential to add significant annual gold and copper production to Newmont's total production, the company said. In addition to the known deposits at Saddle North, there are other exploration opportunities across the land package, Newmont said. The Tahltan Nation's territory covers 95,933 square kilometers, or 11% of BC, and encompasses 70% of the province's Golden Triangle, which has a thriving mineral exploration sector.