BARRICK GOLD (Canada) and HOMESTAKE MINING (United States) have announced that they are gong to merge through a share swap of $2.3 bn, which will make the new entity the world's second largest producer of gold with a capitalization of $9 bn. According to pro forma 2000 results, the two companies combined produced six million ounces of gold. Shares will be swapped on the basis of 0.53 BARRICK GOLD shares for 1 HOMESTAKE share, valuing the latter at $8.71 per share.