Speculation Newmont a Takover Candidate
The share price of Denver-based Newmont Mining rose more Friday than it had in the previous four weeks, following a published report that Barrick Gold Corp. may launch a bid to acquire Newmont.
A spokesman for Toronto-based Barrick, the world’s largest gold miner, dismissed the report as ‘idle speculation,’ but several financial analysts said a merger of the two firms could make sense.
Newmont shares gained 79 cents Friday, nearly 2 percent, to $42.93 after Business Week’s ‘Inside Wall Street’ column cited unnamed sources as saying Barrick could bid for Newmont to bolster its gold production and reserves.
J.P. Morgan Securities mining analyst John Bridges said in a report Friday that ‘it might be opportunistic for Barrick to look at Newmont’ because an acquisition ‘would have significant synergies.’
General Metals Located in Close Proximity to Newmont in Nevada and Ghana
Nevada: The location of the Wilson-Independence Mine is of paramount importance. Newmont’s Phoenix mine which surrounds the Wilson Independence mine, commenced production in the fourth quarter of 2006. Newmont classifies the Phoenix as a “significant production property” in its 10Q filed March 19, 2007. The Phoenix mine property has 8.5 million ounces of gold and 660 million pounds of copper in reserves. Newmont is currently spending in excess of $3.0 billion to develop this mine into the largest operating gold mine in the United States. Newmont has been mining gold in Nevada since 1965 and has multiple Nevada operations including the new Phoenix gold/copper project, located 10 miles south of Battle Mountain which commenced commercial production in the fourth quarter of 2006. Newmont notes in this report that a portion of the gold from Phoenix in Nevada, is contained in a concentrate and further notes the probable grade to be 0.027
For four years running, the Denver-based company Newmont has discovered more gold than it has mined. Barron’s describes Newmont’s reserves as: “concentrated in a handful of key areas that boast huge ore deposits and mines with lives running 16, even 20 years — the kind of world-class properties that are exceedingly rare discoveries these days. ” If you are judged by the company you keep, General Metals is keeping very good company.
Ghana: General Metals once again located in Newmont Mining’s neighborhood and has effective March 15, 2007, completed the acquisition of 100% interest in Mikite Gold Resources (”Mikite”), a Ghanaian corporation with exclusive exploration rights to the Nyinahin Mining Concession near Bibiani, Ghana. The Mineral rights are for gold, diamonds and base metals.
The 150 square kilometer Nyinahin mining concession is located between two geological gold belts, the Bibiani Belt to the west and the Asankrangwa to the east.
The property shares borders with several major mining companies, including Newmont Mining, Napoli Gold and Dunkwa Continental Goldfields. The district is home to the famous Ashanti Goldfields-Obuasi Mines and is one of the most active exploratory areas in the world. Newmont Mining, alone, plans to spend three billion dollars exploring for gold and developing gold mines in Ghana. (See Newmont/Ghana)
General Metals has developed an exploration timetable and for the three designated Nevada targets located in the center of Newmont Mining’s largest new development, the Phoenix property as outlined in its most recent SEC filing of March 22, 2007, 10Q.
General Metals has budgeted approximately $1.84 million to carry out a three-phased drill program on the Wilson-Independence project.
Nevada is a big play for General Metals and it has three targets (Link Here for Description and Aerial Images).
General Metals has produced The Carrington Report which describes the potential for the the targets in Nevada.
General Metals Corporation
Steve Parent, CEO, 775-686-6078
775-721-6428 (cell)
generalmetals@hotmail.com
Source: General Metals and Barrons
General Metals Corporation
1 E. Liberty St. Suite 6000
Reno, NV 89501
Phone: (775) 686-6078
Website: http://www.stockguru.com/blog/www.generalmetalscorporation.com%20
Forward Looking Statements: This release contains “forward-looking statements”, as that term is defined in Section 27A of the United States Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Statements in this press release which are not purely historical are forward-looking statements and include any statements regarding beliefs, plans, expectations or intentions regarding the future. Such forward-looking statements include, among other things, any future metal price forecasts, any future performance and any reserves they have reported in their Phoenix Mine or any reserve estimates.
Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the inherent uncertainties associated with mineral exploration. We are not in control of metals prices and these could vary to make development uneconomic. These forward-looking statements are made as of the date of this news release, and we assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although we believe that the beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance that such beliefs, plans, expectations or intentions will prove to be accurate. Investors should consult all of the information set forth herein and should also refer to the risk factors disclosure outlined in our annual report on Form 10-KSB for the 2006 fiscal year, our quarterly reports on Form 10-QSB and other periodic reports filed from time-to-time with the Securities and Exchange Commission.
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