Barrick Gold starts out its statement about the proposed acquisition of Equinox Minerals with the customary blather about the target’s quality, the fact that the deal fits its strategy and how it will be accretive to earnings per share. Once that is out of the way though, chief executive Aaron Regent says something unique: the deal “does not dilute our shareholders’ gold exposure per share”.

Being an all-cash deal, this is technically true and it is an important assurance for owners of the world’s largest gold miner. It exited all of its hedges two years ago, honouring shareholders’ desire for pure commodity exposure. But while using equity would have leveraged the yellow metal’s record price to gain more exposure to the red one, Barrick will be turning a darker shade of orange nonetheless.

Equinox’s board approval, a 16 per cent premium to the existing hostile offer by Minmetals, a break-up fee, secure financing and the possibility that a counterbid by the Chinese company could run afoul of Canada’s Foreign Investment Review Board all make Barrick’s offer seem close to a done deal. But is it a good one?