US gold major Newmont’s $10-billion deal to purchase Vancouver-based Goldcorp has received Investment Canada Act approval, paving the way for the transaction to close this week.
The plan of arrangement has previously received shareholder approval and clearance under the Canadian Competition Act. No further approvals are required.
The transaction is expected to close on April 18, upon which the new company, to be called Newmont Goldcorp, will be the world’s largest gold producer with assets in the Americas, Africa and Australia.
Newmont Goldcorp will produce between six-million and seven-million ounces a year of gold, compared with current market leader Barrick’s yearly forecast production of about 5.1-million to 5.6-million ounces.