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Barrick makes $9.2 billion bid for Placer Dome

Barrick Gold Corp. made a $9.2 billion offer for Placer Dome Inc. Monday in a deal that would also send certain Placer Dome assets to Goldcorp .
/ Source: Reuters

Barrick Gold Corp. made a $9.2 billion offer for Placer Dome Inc. Monday in a deal that would also send certain Placer Dome assets to Goldcorp .

Barrick said it offered Placer shareholders $20.50 a share, a 24 percent premium over the company's $16.51 closing price in New York Friday.

Upon completion of the deal, Goldcorp has agreed to acquire Placer Dome's Campbell, Porcupine, and Musselwhite gold mines in Ontario and the La Coipa silver mine in Chile and a 40 percent stake in the Pueblo Viejo development project in the Dominican Republic for about $1.35 billion.

That would boost Goldcorp 2006 output by 50 percent to over 2 million ounces, Goldcorp said.

Barrick said the combined company will have an estimated production of between 8.3 million and 8.4 million ounces of gold and about 370 million pounds of copper for 2005.