Barricks Gold Corporation Gets Zambian Governmnet Nod For Equinox Takeover

By Mutale Kapekele

The government has given Barrick Gold Corporation of Canada unconditional clearance to take over Equinox Minerals, the parent company of Lumwana Mines.

Originally the ZAMBIA Competition and Consumer Protection Commission (ZCCPC) approved the purchase of Lumwana Copper Mine by Barrick Gold Corp on condition that the mining giant honours the subsisting agreements that the Mines had entered into with the local smelter, local suppliers to the mine and other third line industries.
The ZCCPC also demanded that Barrick Gold Corp should ensure that no job loses occur as a result of the transaction.
The Commission further demanded that Barrick Gold Corporation will not buy the 2.2 per cent shares in Equinox held by Zambia Consolidated Copper Mines – Investment Holdings (ZCCM-IH).

But in a statement yesterday Equinox confirmed that the government through ZCCPC has given unconditional clearance to Barrick Gold Corp.“Equinox acknowledges that Barrick has received Zambian clearance for the acquisition of Equinox. All regulatory approvals are now received. Barrick has received the unconditional approval of the Zambian Competition and Consumer Protection Commission for the proposed acquisition of the outstanding common shares of Equinox by way of takeover bid,”Equinox stated. “All required regulatory approvals for the offer have now been received and Equinox encourages shareholders to tender into the offer, which is open for acceptance until 5:00 p.m. (Toronto time) on June

1, 2011, unless the Offer is extended or withdrawn.”

On April 25, 2011, Equinox announced an agreement with Barrick Gold Corporation pursuant to which Barrick has agreed, subject to the terms of a support agreement, to make the Offer to purchase all outstanding common shares of Equinox by way of negotiated take-over bid at a price of C$8.15 per share in cash. Barrick subsequently commenced the offer on April 26, 2011.

The Equinox board of directors has unanimously recommended that their shareholders accept the offer, and deposit their

Shares under the offer.