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Barrick Gold Corp
said it had struck a deal to buy Australian copper miner, Equinox
Minerals, for more than C$7 billion, topping a takeover offer by
China’s Minmetals Resources by 16 per cent.

Already the world’s
largest gold miner, Barrick is looking to bolster its position in
copper, a primary industrial metal, while prices are near record highs.

Toronto-based
Barrick said Equinox had agreed to be acquired for C$8.15 a share, an
8.7 per cent premium over the company’s Thursday closing price.
According to Reuters data, Equinox has about 879.5 million listed
shares, which would make the deal worth nearly C$7.2 billion.

Minmetals earlier
this month offered to buy Equinox for C$7 a share, but the Australian
copper miner called that proposal a low-ball bid. Equinox said it
believes the Barrick bid is superior in terms of price and likelihood
of completion.

Barrick said its
agreement for Equinox prevents the Australian miner from soliciting
superior bids and gives Barrick the right to match any higher offers.
Equinox would have to pay Barrick C$250 million to walk away from the
deal, even if it accepts a higher bid.

Equinox has prime
copper assets in Africa and Saudi Arabia that make it attractive to
larger miners. Its Lumwana copper and uranium mine in Zambia is
Africa’s third-largest copper mine by production and the Jabal Sayid
copper development in Saudi Arabia is due to start production next year.

Barrick chief
executive, Aaron Regent, said the deal would improve the company’s
copper exposure in a strong price environment for the metal, which is
used in construction and industrial applications.

“Combined with our
Zaldivar mine and Cerro Casale project in Chile, this acquisition would
position Barrick with significant production growth potential in two of
the most prolific copper-producing regions of the world,” Mr Regent
said.

As part of its
agreement to be bought by Barrick, Equinox will pull its unsolicited
bid for Lundin Mining. Equinox had been trying to take over its rival
copper miner since February but conceded on Monday that its own
shareholders would not likely have supported the deal.

U.S.-listed shares of Barrick slid 1.4 per cent to $54.85 in premarket trading after the announcement.

Barrick said it has
committed cash and financing in place for the transaction. It expects
the deal to add to earnings per share and cash flow immediately.

Morgan Stanley and
RBC Capital Markets advised Barrick on the deal, while CIBC World
Markets, Goldman Sachs, and TD Securities acted as financial advisers
to Equinox.

Reuters