Fronteer Gold Inc TSX:FRG announced that they have entered into an agreement whereby Newmont Mining Corporation NYSE:NEM will acquire all outstanding shares of Fronteer. Fronteer shareholders will receive $14.00 in cash and one common share in a new company, Pilot Gold, for each common share. The cash consideration represents a premium of approximately 37% to the closing price of the common shares of Fronteer on the TSX as of February 2, 2011 and equates to a value of approximately $2.3 billion for Fronteer Gold.
Fronteer President/CEO Mark O’Dea commented, “This transaction delivers an immediate and attractive premium to our shareholders. It not only recognizes the current value of our key Nevada gold projects, but rewards shareholders for their future growth. Newmont shares our view that Long Canyon, our flagship project, is a ‘best-in-class’ asset with excellent production attributes and significant growth potential. Importantly, this transaction continues to expose Fronteer Gold shareholders to our ongoing exploration and development success through Pilot Gold. Pilot will have an ideal new company structure, an experienced board of directors and management team, and sufficient financial resources to immediately undertake active exploration programs in both Turkey and Nevada.”
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Newmont Mining Corporation
or Karli Anderson
by Ted Niles