PERTH (miningweekly.com) – Australian gold-miner Newcrest Mining has completed a due diligence study on takeover target Lihir Gold, and has called on its takeover target to cease all third party negotiations and assistance with other competing proposals.

In May, Lihir agreed to a A$9,5-billion takeover offer from Newcrest, in a deal that would create the world’s fourth-largest gold company.

Third parties interested in making a competing bid had until Tuesday to complete their investigations into possible mergers or takeovers. Newswire Reuters on Monday reported that gold giants AngloGold Ashanti, Barrick Gold and Newmont Mining had all investigated Lihir, but that Newcrest was seen as the only bidder.

Meanwhile, Newcrest also reported that the timeline for the takeover offer has been extended by between one and two weeks, in order to give the independent expert ample opportunity to complete its report.

The Lihir shareholders meeting to vote on the scheme agreement would now be held in August, with the completion of the merger expected in September, subject to shareholders approving the transaction.

The directors of Lihir have previously recommended that shareholders vote in favour of the takeover scheme in the absence of a superior proposal.

Newcrest reiterated its belief that the merger had compelling strategic logic and merit. The company said that the combined company would have one of the largest global gold reserves with operations in five countries.

The combined group would produce 2,8-million ounces a year of gold.

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