Late last week, Bloomberg’s Rob Delaney reported that Barrick Gold, the largest producer of gold in the world, has put in a higher offer to buy Cadence Energy Ltd.
Cadence, an energy and oil company based in Toronto, Canada, would provide Barrick with oil, allowing the company to save about 25% in related costs.
The offer from Barrick has been raised to $410 million in cash, which breaks down to $6.75 per share of Cadence stock. The original offer was for $6 per share.
The updated offer comes on the news that Daylight Resources Trust, another Canadian firm, had put in competing bids for Cadence. Daylight Resources still has the opportunity to match the Barrick offer.
As a result of the bidding war, Cadence’s stock rose to $6.76 a share on July 17th.
As gold companies deal with rising oil costs, they are taking advantage of the high pay-out costs for gold and are attempting to re-route those profits to save into other energy initiatives.
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