Short Business News
(22-8, Mineweb)

A top Barrick (NYSE: ABX) official accused the Gold Anti-Trust Action Committee (GATA) of deliberately trying to mislead the investment community and the news media in Barrick’s bid to acquire Vancouver-based NovaGold (AMEX: NG).

GATA urged NovaGold shareholders “not to tender their shares to Barrick before Barrick closes its short position in gold.” The organization said that Barrick’s alleged short position of about 12 million ounces of gold “long has been a major suppressing force against the gold price and against the price of gold mining shares.”

GATA Chairman Bill Murphy claimed that the major company “is desperate for the unhedged gold in the group at NovaGold, with which Barrick would extricate itself from a nightmare. Taking over NovaGold would help Barrick immensely.”

Last month, Barrick made a hostile all-cash bid of $1.3 billion for all the shares of NovaGold.