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Barrick Proposes Innovative Transaction to Mitigate Energy Cost Pressures

July 14, 2008

TORONTO, ONTARIO -- (MARKET WIRE) -- 07/14/08 -- Barrick Gold Corporation (NYSE: ABX) (TSX: ABX) -

All amounts expressed in Cdn. dollars unless otherwise indicated

Barrick Gold Corporation (NYSE: ABX) (TSX: ABX) announced today that it has proposed to make an all cash offer of $6.00 per share to acquire Cadence Energy Inc. ("Cadence") for a total cost of $354 million.

Cadence's production was approximately 3,600 barrels(1) of oil equivalent (BOE) per day. The production consists of over 70% light crude oil, which has historically tracked diesel prices. Cadence's properties have a long production history and a Reserve Life Index of approximately 13.8 years(1) consistent with the long life nature of Barrick's core gold mining operations.

"We are confronting the energy cost challenges facing our industry through this long term economic hedge of about one-quarter of our direct oil consumption and a significant portion of our direct natural gas consumption," said Jamie Sokalsky, Executive Vice President and Chief Financial Officer. "This unique approach is enabled by the proposed acquisition of quality, long life reserves of approximately 18.2 million BOE(1) at an acquisition cost of approximately $20 per BOE."

The acquisition of Cadence is expected to form a long term strategy to economically hedge oil exposure at lower rates than currently available in the forward market. In addition, the acquisition is expected to have break-even cash flow at oil prices that are less than one-half of current market prices.

"This initiative follows on our other innovative programs such as our investment in our own power plant and hedging of our input costs and currency exposures," added Mr. Sokalsky. Barrick is assured a cost effective energy supply from its Western 102 natural gas power plant in Nevada. Barrick is also investing US$70 million for a 36-megawatt wind farm in Chile as part of its long term energy strategy.

Cadence is currently party to an arrangement agreement with Daylight Resources Trust, and Barrick's proposed offer represents a 10% premium to the closing price of Cadence's shares on July 11, 2008. Barrick's offer is contingent on the completion of customary due diligence and entering into customary agreements to support the offer. The offer is not subject to any financing condition.

Full details of the offer will be included in the formal offer and take-over bid circular to be filed with the securities regulatory authorities and mailed to Cadence shareholders. Barrick expects to have the take-over bid documents filed as soon as possible. The offer will be open for acceptance for at least 35 days following the commencement of the offer. The offer will be subject to certain conditions, including receipt of all necessary regulatory clearances, absence of material adverse changes and acceptance of the offer by Cadence shareholders owning not less than 66 2/3 per cent of the Cadence common shares on a fully-diluted basis. Once the 66 2/3 per cent acceptance level is met, Barrick intends, but is not required, to take steps to acquire all outstanding Cadence common shares.

Barrick has been developing its overall energy strategy over the course of the last few years and has been advised in this proposed transaction by Mustang Capital Partners, RBC Capital Markets, Sproule Associates, Davies, Ward Phillips and Vineberg LLP and Fraser Milner Casgrain LLP.

Barrick's vision is to be the world's best gold company by finding, acquiring, developing and producing quality reserves in a safe, profitable and socially responsible manner.

CAUTIONARY STATEMENT ON FORWARD-LOOKING INFORMATION

Certain information contained in this Press Release, including any information as to our future financial or operating performance and other statements that express management's expectations or estimates of future performance, constitute "forward-looking statements". More particularly and without limitation, this press release contains forward looking statements and information concerning Cadence's petroleum and natural gas production, reserves and resource and reserve life index. All statements, other than statements of historical fact, are forward-looking statements. The words "believe", "expect", "will", "anticipate", "contemplate", "target", "plan", "continue', "budget", "may", "intend", "estimate" and similar expressions identify forward-looking statements. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management, are inherently subject to significant business, economic and competitive uncertainties and contingencies. The Company cautions the reader that such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual financial results, performance or achievements of Barrick to be materially different from the Company's estimated future results, performance or achievements expressed or implied by those forward-looking statements and the forward-looking statements are not guarantees of future performance. These risks, uncertainties and other factors include, but are not limited to: changes in the worldwide price of gold, copper or certain other commodities (such as silver, fuel and electricity); fluctuations in currency markets; changes in U.S. dollar interest rates or gold lease rates; risks arising from holding derivative instruments; ability to successfully complete announced transactions and integrate acquired assets; legislative, political or economic developments in the jurisdictions in which the Company carries on business; operating or technical difficulties in connection with mining or development activities; employee relations; availability and increasing costs associated with mining inputs and labor; the speculative nature of exploration and development, including the risks of obtaining necessary licenses and permits and diminishing quantities or grades of reserves; adverse changes in our credit rating, contests over title to properties, particularly title to undeveloped properties; the risks involved in the exploration, development and mining business; future well production rates; reserve and resource volumes; reserve life index; the performance of existing wells; and the success obtained in drilling new wells;. These factors are discussed in greater detail in the Company's most recent Form 40-F/Annual Information Form on file with the U.S. Securities and Exchange Commission and Canadian provincial securities regulatory authorities.

The Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by applicable law.

Barrels of Oil Equivalent

"BOE" means barrel of oil equivalent on the basis of 1 BOE to 6,000 cubic feet of natural gas. BOE's may be misleading, particularly if used in isolation. A BOE conversion ratio of 1 BOE for 6,000 cubic feet of natural gas is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

(1) As per Cadence's press release dated May 26, 2008

Contacts:
INVESTOR CONTACT: Deni Nicoski
Vice President, Investor Relations
(416) 307-7410
Email: dnicoski@barrick.com

MEDIA CONTACT: Vincent Borg
Senior Vice President, Corporate Communications
(416) 307-7477
Email: vborg@barrick.com

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