Newmont (NYSE: NO) has made a non-binding offer to buy Newcrest Mining ( OTCPK:NCMGF ) ( OTCPK:NCMGY ), Australia’s largest gold miner said on Sunday.
Under the proposed terms of the deal, Newcrest (OTCPK:NCMGF) (OTCPK:NCMGY) shareholders would receive 0.38 Newmont (NEM)) share for each Newcrest share held, which would value of Newcrest at ~$17 billion.
Newcrest ( OTCPK:NCMGF ) ( OTCPK:NCMGY ) said its board is considering the proposal, which is contingent on approval of exclusive due diligence by Newmont ( NEM ).
Newmont ( NEM ) made an earlier bid offering an exchange ratio of 0.363, which Newcrest’s ( OTCPK:NCMGF ) ( OTCPK:NCMGY ) board rejected.
Mining stocks like Newmont ( NEM ) “offer potential recession protection as a strong ‘Fed pivot’ could send gold soaring to new all-time highs,” writes Harrison Schwartz in an analysis recently published on Seeking Alpha.