Newmont Mining to buy Miramar

denver -- Newmont Mining Corp. is reaching into the Arctic Circle for its next project, agreeing Tuesday to pay $1.53 billion for Miramar Mining Corp., which controls one of the largest undeveloped gold properties in North America.

Newmont, one of the world’s largest gold producers, said the acquisition would pave the way for the creation of a mining district in the remote region of Canada’s Nunavut territory.

Newmont, which already owns a 9.9% stake in Vancouver, Canada-based Miramar, offered 6.25 Canadian dollars ($6.36) a share for the remaining shares, representing a 24% premium over Miramar’s Monday closing stock price of $5.15 a share.

The acquisition would boost Denver-based Newmont’s global reserves and is part of an industrywide trend toward consolidation as it becomes more difficult to find gold reserves.

It comes about three months after Richard O’Brien took over as chief executive and shifted Newmont’s focus back to core mining operations.

Miramar Chief Executive Tony Walsh called it a fair offer -- a 29% premium over Miramar’s 20-day average trading price on the Toronto Stock Exchange. “We think Hope Bay’s a world-class asset, and we think this is a good, fair price for the shareholders,” Walsh said.

Shares of Miramar gained $1.23 to $6.38 and Newmont’s stock rose $1.19 to $46.02.