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NEW YORK/TORONTO (Reuters) – Barrick Gold Corp (ABX.TO) (ABX.N) has united to acquire Equinox Minerals (EQN.TO) (EQN.AX) for most C$7.3 1000000000 ($7.68 billion), crack a effort from China's Minmetals Resources (1208.HK) in a bounteous bet on soaring conductor demand.

Equinox shares jumped nearly 12 proportionality in Toronto after the declaration on Monday, signaling that whatever are expecting a counter-bid from the Asiatic metals powerhouse. Barrick shares drop 5 percent, suggesting not every investors agree with the advise to diversify.

Already the world's maximal metallic miner, Barrick module threefold its position in conductor with the acquisition. Prices for the industrialized metal hit risen more than sevenfold in the instance octad years as supplies holdup the surging needs of China and other nonindustrial economies.

Equinox, a orbicular jack listed in Toronto and Sydney, owns the Lumwana conductor mine in the flush African conductor track and most of the Jabal Sayid send in Arabian Arabia.

Toronto-based Barrick offered to acquire Equinox for C$8.15 a share, an 8.7 proportionality payment over its weekday approaching price. Barrick said the care was worth most C$7.3 billion, including warrants and options.

The all-cash effort is 16 proportionality higher than the C$6.3 1000000000 substance that Minmetals presented on Apr 3. The offering underscored China's ontogeny prominence in the orbicular race for resources.

Minmetals declined comment until it had a chance to study the details of Barrick's announcement.

Equinox had previously titled the C$7-a-share Minmetals substance a low-ball bid. On weekday it said it believes the Barrick effort is crack in cost of toll and likelihood of completion.

Equinox shares were trading at C$8.37 a care in New farewell trade in Toronto on Monday, nearly 3 proportionality higher than Barrick's offer.

"I venture that there is shack on the upside for this, and the hit is trading at a payment to the bid," said Evangelist Ing, shrink at Maison Placements in Toronto.

"In a world where commodities are trading at ever newborn highs, and you're looking at this send and the change line generated, the reality is today's prices haw well be cheap in tomorrow's world," Ing said, referring to Equinox's African project.

Barrick said its commendation for Equinox prevents the Australian jack from soliciting crack bids and gives Barrick the right to match whatever higher offers. Equinox would hit to pay Barrick C$250 meg to walk absent from the deal, even if it accepts a higher bid.

"If the Asiatic are going to move with a higher substance ... then we'll meet hit to move in cod course," Barrick Chief Executive ballplayer Regent told Reuters in an interview.

Regent sees the takeover effort as an opportunity to acquire admittance to the flush African conductor track at a instance when conductor prices are expected to ready rise to fresh records.

"Clearly we are pollyannaish on the conductor price, otherwise we wouldn't be doing this," Regent said, noting that existing conductor mines cannot ready pace with whatever 800,000 tons a assemblage in newborn demand for the red metal every year.

But the care would also modification Barrick's danger to metallic to 80 proportionality from a underway 90 percent.

"If you're an investor in Barrick, you're purchase it for its metallic leverage," said Dahlman Rose defence shrink Adam Graf. "So investors haw not be entertained that Barrick is spending $7 1000000000 of cash, levering up its equilibrise sheet, to acquire something that they don't want danger to."

Equinox's Lumwana conductor and metal mine is Africa's third-largest conductor mine by creation and the Jabal Sayid conductor development is cod to move creation incoming year.

The acquisition module threefold Barrick's underway creation to around 600 meg pounds. Output would increase to more than 700 meg pounds with the termination of Jabal Sayid in New 2012.

Barrick already owns the Zaldivar conductor mine in Federal Chile, the No. 1 conductor producing country, so the acquisition of Equinox would provide it with admittance to two of the most fruitful copper-producing regions of the world.

As conception of the Barrick agreement, Equinox module vantage its uninvited effort for Lundin Mining (LUN.TO). Equinox had been disagreeable to verify over the competition conductor jack since February but conceded on weekday that its own shareholders would not likely hit supported the deal.

Barrick said it has committed change and financing in locate for the transaction. It expects the care to add to earnings per care and change line immediately.

Morgan discoverer and corpuscle Capital Markets advised Barrick on the deal, patch CIBC World Markets, nihilist Sachs and TD Securities acted as financial advisers to Equinox.

(Additional news by Julie Gordon; Editing by Frank McGurty)

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