Tuesday, 25th July 2006 (3152 views)

NovaGold has declared itself "disappointed" at what it calls an "opportunistic" takeover bid from gold giant Barrick.

Barrick made an offer of $14.50 per share, which equates to roughly $1.3 billion, for control of the mining company, which has several assets throughout the stable mining region of North America.

However, NovaGold said that the offer undervalued the assets it held, meaning Barrick may have to reassess its offer pending a recommendation from NovaGold's financial advisor RBC Dominion Securities and its special committee, industry analysts said.

NovaGold controls several key assets, particularly at Donlin Creek in Alaska and Galore Creek, among other important sites, in British Columbia.

Barrick recently became the world's largest producer of gold after it successfully completed a takeover of rival gold miner Placer Dome.

If Barrick manages to secure NovaGold's assets in North America it would increase its presence on the continent by over 50 per cent.

 

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