Barrick Announces Agreement To Acquire Equinox For C$8.15-Share (ABX)

Barrick Gold Corporation ABX announced today that it has entered into a support agreement with Equinox Minerals Limited for Barrick to acquire, through an all-cash offer, all of the issued and outstanding common shares of Equinox by way of a friendly take-over offer. The Offer is for C$8.15 per Equinox share in cash, or a total of approximately C$7.3 billion. The Offer represents a 30% premium based on Equinox's closing share price on the Toronto Stock Exchange on February 25, 2011. The Offer also represents a 16% premium over the per share price under the offer for Equinox proposed by Minmetals Resources Ltd. on April 3, 2011. Aaron Regent, President and CEO of Barrick said: "The acquisition of Equinox would add a high-quality, long-life asset to our portfolio and is consistent with our strategy of increasing gold and copper reserves through exploration and acquisitions. The transaction is expected to be immediately accretive to cash flow and earnings on a per share basis. It does not dilute our shareholders' gold exposure per share, and it enhances copper exposure and leverage per share in a strong copper price environment. Combined with our Zaldivar mine and Cerro Casale project in Chile, this acquisition would position Barrick with significant production growth potential in two of the most prolific copper-producing regions of the world. This will be in addition to our targeted growth in annual gold production to 9 million ounces within the next five years." 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 -- 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