Barrick Gold Corp. (TSX:ABX) announced Friday that 94 per cent of the shares of Cadence Energy Inc. (TSX:CDS) have been tendered to its takeover offer and it will move to acquire the rest.
Barrick, the world's biggest gold company, is acquiring Cadence, formerly Kereco Energy Ltd., after topping an offer from Daylight Resources Trust (TSX:DAY.UN) in July.
The purchase complements Barrick's long term strategy to hedge its oil purchases to cut its fuel costs at its far flung gold mining operations around the world.
Last month, Barrick also struck a deal to buy oil and gas production of about 900 barrels of oil equivalent output a day at Sturgeon Lake, Alta. from Daylight for $87.5 million in cash.
The Daylight properties are beside Cadence's Sturgeon Lake assets, allowing Barrick to consolidate 100 per cent ownership of the Sturgeon Lake South Leduc pool for the first time since'53.
"The acquisition of Cadence is a key component of Barrick's long term strategy to economically hedge oil exposure at lower rates than those available in the forward market," Barrick said.
The company also said Friday it had hired David Boone, former president of international and offshore operations at Encana Corp. (TSX:ECA), as president of its oil and gas operations.
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