Simon Dawson | Bloomberg | Getty Images
Mine workers pour molten gold into moulds during the refining process at the production plant for the Loulo-Gounkoto gold mine complex operated by Randgold Resources Ltd. in Loulo, Mali, on Friday, Nov. 1, 2013.
Under the terms of the deal, each Randgold shareholder will receive 6.1280 brand-new Barrick shares for each share of the African rival, the companies said.
Barrick shareholders will own about 66.6 percent of the brand-new Barrick merged company while Randgold shareholders will own about 33.4 percent.
Randgold’s long-term chief executive Mark Bristow will retain of which same role inside brand-new merged company while Barrick’s John Thornton will become the executive chairman.
“The Boards of Barrick as well as Randgold believe of which the Merger will create an industry-leading gold company with the greatest concentration of Tier One Gold Assets inside industry, the lowest total cash cost position among senior gold peers,” the companies said in a joint statement.
Gold miners have come under fire coming from investors for poorly managing capital, forcing them to focus on costs while dampening enthusiasm for acquisitions.
Both Barrick as well as Randgold have lost about a third of their market capitalisations over the past year.