According to Mining News Pro -According to Reuters, the terms of the contract indicate that the shareholders of  Ranggold will receive 6,1280 shares in the  Barrick Gold  instead of any shares held by the company. Also, according to the British BSI, stake holders will have 66.6 percent of the newly merged stock, which will retain the name  Barrick Gold head.

The merger of the two companies is the result of their common goal of reducing costs and raising margins. With a 8% drop in gold price this year, the shares of both companies dropped by 30%.

"Our industry has always been criticized for focusing on short-term issues, irregular growth and poor returns for investors, but the merged company will be very different," said Mark Bristho, chief executive officer of  Ranggold.

Bristho will be the new CEO of the company and John Thornton, the current head of the Barrick Gold, will be the new company`s general manager.

Currently,  Barrick Gold has gold mining operations in the United States, Peru, Chile and Argentina, while  Ranggold operates in Côte d`Ivoire, Mali and the Republic of Congo.