Australia's Newcrest Mining gets takeover bid from Newmont

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Newmont (NYSE:NEM) made a non-binding offer to acquire Newcrest Mining (OTCPK:NCMGF) (OTCPK:NCMGY), Australia's top gold miner said Sunday.

Under the proposed deal terms, Newcrest (OTCPK:NCMGF) (OTCPK:NCMGY) shareholders would receive 0.38 Newmont (NEM) shares for each Newcrest share held, which would value Newcrest at ~$17B.

Newcrest (OTCPK:NCMGF) (OTCPK:NCMGY) said its board is considering the proposal, which is conditional on Newmont (NEM) being granted exclusive due diligence.

Newmont (NEM) made an earlier bid offering an exchange ratio of 0.363, which Newcrest's (OTCPK:NCMGF) (OTCPK:NCMGY) board rejected.

Mining stocks such as Newmont (NEM) "offer a potential recession hedge as a strong 'Fed pivot' could send gold soaring to a new all-time high," Harrison Schwartz writes in an analysis newly published on Seeking Alpha.