Published on Gold Anti-Trust Action Committee (http://www.gata.org)

Additional Howe brief accepted in lawsuit

By cpowell
Created 2001-06-25 07:00

(This is the top of the Homestake press release.)

TORONTO, June 25 /PRNewswire/ -- Barrick Gold Corporation and
Homestake Mining Company today announced plans to merge, creating a
new leader in the gold industry -- both in quality and scale. The
combined company is expected to have a market capitalization of US$9
billion, double that of the nearest competitor. It will be the second
largest gold producer with the lowest cash costs of any major
producer and have approximately US$900 million in cash. The merged
company's earnings and cash flow are expected to be the highest in
the industry.

"This strategic merger combines the operational, financial and human
resources of two great companies to create the preeminent global gold
mining company," said Randall Oliphant, President and Chief Executive
Officer of Barrick. "We are establishing a platform to build on, with
strengths that better position us to generate profitable growth."

"We are teaming up with the financially strongest partner," said Jack
Thompson, Chairman and Chief Executive Officer of Homestake. "This
merger is the next natural step in a process that has seen Homestake
transform itself from a high-cost, U.S. asset-based company, to a low-
cost, global producer over the last decade."

Under the merger agreement, Barrick is offering to exchange 0.53 of a
Barrick share for each of Homestake's 263.3 million outstanding
shares, which represents a value of US$8.71 for each Homestake share.
This is a premium of 31 per cent based on the June 22, 2001 closing
price of US$6.65 for Homestake shares on the New York Stock Exchange
and a premium of 27 per cent based on the US$6.87 average closing
price of Homestake's shares over the last 10 trading days. Following
the merger, holders of exchangeable shares of Homestake Canada will
be entitled to exchange their shares into Barrick common shares based
on the same ratio.

The Boards of Directors of both companies have unanimously approved
the transaction. Barrick has signed commitment agreements with
certain shareholders and directors of Homestake, who hold
approximately 12% of Homestake's outstanding shares and have agreed
to vote in favor of the merger.

The transaction is intended to be tax-free for U.S. income tax
purposes and is subject to regulatory and Homestake shareholder
approvals. No approval by Barrick shareholders is required. The
transaction is planned to be treated as a pooling of interests under
U.S. Generally Accepted Accounting Principles (GAAP) and is expected
to close in the fourth quarter of 2001.

Since the transaction will further increase Barrick's United States
shareholder base, and in order to bring the company in line with its
peer group, Barrick will adopt U.S. GAAP as its primary basis of
communicating financial results upon completion of the merger.

"Homestake's high-quality, low-cost assets are very complementary to
Barrick's. Our production profile is enhanced by Homestake's annual
production of approximately 2 million ounces at similar low costs,"
said Randall Oliphant. "In addition to becoming the largest producer
in Canada and the United States, we will be the second-largest
producer in Australia."

"This transaction opens a new chapter in Homestake's 125-year
history," said Jack Thompson, who becomes a member of the Board of
Directors of the merged company. "Our great legacy will be carried on
in a combined company that will reinforce Homestake's long-held
tradition of operating excellence, technical innovation and financial

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