C$8.15 Per Share Cash Offer Recommended by Equinox Board
TORONTO, ONTARIO -- (Marketwire) -- 04/25/11 -- Barrick Gold Corporation (NYSE: ABX)(TSX: ABX) -
All amounts expressed in US$ unless otherwise indicated
Highlights
Equinox realizes compelling value
-- Equinox signs support agreement with Barrick for C$8.15 per share all-
cash recommended offer
-- 30% premium based on Equinox's closing share price on the Toronto Stock
Exchange on February 25, 2011 (the last trading day before announcement
of Equinox's bid for Lundin)
-- superior offer representing a 16% premium to the value of the proposed
Minmetals offer
-- no financing condition; Barrick has sufficient cash and committed
financing in place to fund the acquisition
-- unanimously recommended by Equinox's Board of Directors
-- Equinox will withdraw its bid for Lundin
Cash flow and earnings accretive for Barrick shareholders
-- proven, producing mine with strong growth potential
-- utilizes Barrick's balance sheet capacity
-- historically low interest rates on debt financing
The addition of the high-quality, long-life Lumwana asset
-- long mine life in a mining friendly jurisdiction
-- provides entry into highly prospective Zambian copper belt
Consistent with Barrick's strategy of increasing gold and copper reserves
through exploration and acquisitions
-- attractive supply and demand fundamentals for copper for the foreseeable
future
-- 5.7 billion pounds of copper reserves, including 4.5 billion pounds of
copper reserves at Lumwana and 1.2 billion pounds of copper reserves at
Jabal Sayid, plus an additional 5.5 billion pounds of inferred copper
resources at Lumwana(1)
-- scarcity of opportunities of this size and quality
-- maintains gold exposure per share and enhances copper leverage per share
-- financial flexibility remains to fund internal growth projects
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