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Wed, Jul 26, 2006 - Page 10 News List

Barrick offers counter bid for NovaGold


Barrick Gold Corp, the world's largest gold miner, said on Monday it would offer US$1.53 billion cash, or US$14.50 a share, for NovaGold Resources Inc in order to consolidate its interest in mines in Alaska and Canada.

The acquisition would add the Galore Creek copper-gold-silver development in the Stikine region of British Columbia to Barrick's portfolio, and would also give Barrick sole ownership of the Donlin Creek gold project in southwest Alaska.

In conjunction with the deal, Toronto-based Barrick also is offering US$53 million for Pioneer Metals Corp, Vancouver, BC, to help it consolidate its Galore Creek project in British Columbia.

Barrick's offer supersedes a hostile bid by NovaGold for Pioneer, which is in litigation with NovaGold over the Grace project, adjacent to Galore Creek. NovaGold has been offering US$0.50 per share in a bid which expired yesterday.

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