By Susanna Moon
Chicago, Oct. 9 - Newmont Mining Corp. said it entered into a definitive agreement to acquire Miramar Mining Corp. for C$1.5 billion, or C$6.25 in cash per common share.
The company said the offer price represents a premium of 29% over Miramar's 20-day volume weighted average trading price on the Toronto Stock Exchange through Oct. 5.
Miramar's board unanimously approved the terms of the takeover and will recommend that shareholders tender to the offer, according to a press release.
"We made an initial investment in Miramar in 2005 because we saw the potential strategic opportunity offered by the Hope Bay Project as part of our broader exploration and growth portfolio," Richard O'Brien, Chief executive officer and president of Newmont, said in the release.
Newmont is a Denver-based mining company.
| Acquirer: | Newmont Mining Corp.
|
| Target: | Miramar Mining Corp.
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| Transaction value: | C$1.5 billion
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| Price per share: | C$6.25 in cash
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| Announcement date: | Oct. 9
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