Newmont Gold Corp. announced that it has agreed to buy Canadian gold producer Goldcorp Inc. in a $10 billion, all stock deal that will create the largest god mining company in the world. Under terms of the agreement, Newmont will acquire each outstanding share of Goldcorp for 0.3280 of a Newmont share which represents a 17 percent premium based on the companies’ 20-day volume weighted average share prices.

The move is the latest merger in the gold sector and positions Newmont to surpass long-time rival Barrick Gold as the world’s top producing gold miner. Barrick recently acquired Randgold Resources in a $6 billion dollar merger.

Newmont said in a release that the agreement will combine two gold industry leaders into Newmont Goldcorp, to create an unmatched portfolio of operations, projects, exploration opportunities, reserves and people in the gold mining sector.

Newmont Goldcorp’s portfolio will feature operating assets in favorable jurisdictions, an unparalleled project pipeline, and exploration potential in the most prospective gold districts around the globe. Newmont said the combined company’s assets will be mostly based in the Americas, with 75 percent of its resources there. Another 15 percent will be based in Australia, with 10 percent in Ghana. That is in contrast to Barrick, which bet big on more politically risky African assets in its deal with Randgold.

“This combination will create the world’s leading gold business with the best assets, people, prospects and value-creation opportunities,” said Gary Goldberg, Newmont’s chief executive officer. “We have a proven strategy and disciplined implementation plan to realize the full value of the combination, including an exceptional pool of talented mining professionals, stable and profitable gold production of six to seven million ounces over a decades-long time horizon, the sector’s largest gold Reserve and Resource base, and a leading project and exploration pipeline. Our cultures are well aligned, with strong commitments to zero harm, inclusion and diversity, and industry-leading environmental, social and governance performance. We expect to generate up to $100 million in annual pre-tax synergies, with additional cost and efficiency opportunities that will be pursued through our proven Full Potential continuous improvement program. The combination is expected to be immediately accretive to Newmont’s net asset value and cash flow per share. We constantly review opportunities to raise our performance, and this combination represents the most promising path to deliver superior and sustainable value for our shareholders, employees, host countries and communities.”

“This combination creates the world’s premier gold company,” said Goldcorp’s president and chief executive officer, David Garofalo. “In addition to the depth and quality of Newmont Goldcorp’s operations, projects, exploration properties and Reserves, the combined company’s assets will be centered in the world’s most favorable and prospective mining jurisdictions and gold districts. The strategic rationale for combining Goldcorp with Newmont is powerfully compelling on many levels, and both teams are fully committed to delivering on the transaction’s value proposition for all of our stakeholders. Newmont Goldcorp will be one of Canada’s largest gold producers and will have its North America regional office in Vancouver, and expects to oversee more than three million ounces of the combined company’s total annual gold production.”