Barrick nabs Pangea

Shareholders of Pangea Goldfields (PGD-T) have overwhelmingly accepted a takeover bid by Barrick Gold (ABX-T), tendering more than 90% of their common shares.

Barrick paid $7 for each share and is now proceeding to exercise its right to acquire the remainder. At the time of the offer, Pangea had 29.2 million shares outstanding, giving it a value of $204.4 million under the offer. The offer represents a 17.6% premium over Pangea’s closing price of $5.95 on June 29, the day before it was made public.

Meanwhile, Barrick has suspended exploration of the Golden Ridge project in Tanzania’s Lake Victoria Goldfields district. The major, which had been exploring the property through a joint-venture agreement with Pangea, cites unsustainable gold prices for its decision.

Golden Ridge is one of 11 projects Barrick acquires through the takeover. Resources in the Main zone are pegged at 15.5 million tonnes grading 3.2 grams gold per tonne. An additional 600,000-plus ounces are contained in two satellite deposits.