Randgold Refutes SOKIMO Claims Over Barrick Merger
(Kitco News) - SOKIMO,the state miner of the Democratic Republic of the Congo, told RandgoldResources Ltd. (Nasdaq: GOLD) Friday that it will “assert its rights” since amerger announcement this week would bring in a new outside partner, butRandgold refuted the claims.
Canadianproducer Barrick Gold Corp. (NYSE, TSX: ABX) will acquire Randgold in a plannedall-stock merger announced at the start of the week. The merger will create thelargest gold-mining company in the world, with market capitalization put at$18.3 billion.
Randgoldis involved with several projects in the DNC, including a 45% ownership of theKibali mine. Another 45% is owned by AngloGold and 10% by Soci?(C)t?(C) de Miniere deKilo-Moto SA, or SOKIMO.
SOKIMOwas not specific on its plans, according to a Reuters news report, but said thetransaction was an attempt by foreign companies “to impose themselves, withoutany prior discussion, in the countries from which the resources that make uptheir wealth are extracted.”
Randgoldissued a statement Friday saying the proposed merger would have no effect onKibali.
“Thereare no provisions in the joint-venture agreement and the related documentationwhich give SOKIMO any rights resulting from the proposed merger,” Randgoldsaid.
Randgoldalso said it had consulted “comprehensively” with SOKIMO at the board andexecutive levels in the days following the merger announcement, as well as withthe minister of mines and other interested parties. The company said it would“continue to engage with all parties to demonstrate that this transaction wasin the interests of all stakeholders.”
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