One of the largest gold mining companies in the world, Newmont Mining (NYSE: NEM), has announced that will be taking over Miramar Mining Corp. (NYSE: MNG) for around $1.53 billion. Newmont, which is currently the world's second largest gold producer, has had partial ownership of MNG since 2005 when it acquired a 9.9% stake in the company after investing $36.4 million in a Canadian gold field known as the Hope Bay gold belt. Miramar's board has unanimously agreed to Newmont's take over bid and will be recommending that the company's shareholders approve the deal.
Shares of MNG have been soaring today on the announcement. After closing yesterday at $5.15, the stock has sky rocketed today, picking up 22.5% to $6.31, up $1.16. Newmont shares have also been rising today, picking up 2.0% to $45.73, up $0.90.
Full details on the takeover will be made available by the end of this month.
Michael Fowlkes has worked as a stock trader for seven years and spent the last two years working as an analyst for the online investment advisory service Investor's Observer
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