Barrick Mining settled a longstanding dispute with rival Newmont over its Nevada operations, securing a $1.95 billion cash payout and paving the way for the spinoff of Barrick's North American gold assets.

The deal resolves governance disputes stemming from the 2019 creation of the Nevada Gold Mines joint venture, which the two mining majors established after Barrick dropped an $18 billion hostile takeover bid for Newmont.

With the settlement behind them, Barrick can now move forward with an initial public offering of its gold portfolio. The miner's board approved plans to spin off its flagship gold assets in February, clearing the way to bundle its prime assets into a standalone company holding nearly 100 million ounces of gold.

The new company would be anchored by Nevada Gold Mines, a major operation that spans a complex of underground and open-pit mines, mills and other facilities, alongside the Pueblo Viejo mine in the Dominican Republic and the wholly owned Fourmile discovery in Nevada, which Barrick calls one of the century's most significant gold finds.