Barrick Gold Corporation and Newmont Mining Corporation signed an implementation agreement to create a joint venture combining their respective mining operations, assets, reserves, and talent in Nevada. The joint venture will allow them to capture an estimated $500m in average annual pre-tax synergies in the first five full years of the combination, which is projected to total $5bn pre-tax net present value over a 20-year period. Barrick will be operator ofthe new joint venture. Barrick will hold 61.5% of the ownership, while Newmont will hold 38.5%. Board representation will be based on the ownership. The establishment of the joint venture is subject to the usual conditions, including regulatory approvals, and is expected to be completed in the coming months. The joint venture will exclude Barrick’s Fourmile project and Newmont’s Fiberline and Mike deposits, pending the determination of their commercial feasibility. Barrick President and Chief Executive Officer Mark Bristow said the agreement marked the successful culmination of a deal that had been more than 20 years in the making. “We listened to our shareholders and agreed with them that this was the best way to realize the enormous potential of the Nevada goldfields’ unequalled mineral endowment, and to maximize the returns from our operations there. We are finally taking down the fences to operate Nevada as a single entity in order to deliver full value to both sets of shareholders, as well as to all our stakeholders in the state, by securing the long-term future of gold mining in Nevada,” he said. Gary Goldberg, Chief Executive Officer of Newmont, said the logic of combining the two companies’ operations was compelling. “This agreement represents an innovative and effective way to generate long-term value from our joint assets in Nevada, and represents an important step forward in expanding value creation for our shareholders. Through the joint venture, we will also continue to pursue the highest standards in safety, along with responsible and meaningful engagement with our employees, communities, and other stakeholders,” he said. This JV follows a hostile bid from Barrick for the whole of Newmont, which was withdrawn on 11 March 2019.