DENVER--(BUSINESS WIRE)--
Following the previously announced non-binding letter of intent in
April, Newmont Mining Corporation (NYSE: NEM) (“Newmont” or “the
Company”) has entered into a definitive, binding agreement with
OceanaGold Corporation (TSX/ASX/NZX: OGC) (“OceanaGold”) to sell Newmont
Waihi Gold Limited.
Terms of sale include cash proceeds of US$101 million, a US$5 million
contingent payment, and a one percent Net Smelter Royalty on a recent
discovery north of Waihi’s current operations. OceanaGold will acquire
all of Waihi’s open pit and underground mining assets and liabilities.
Approvals have been secured from each company’s Board, and closing of
the deal is anticipated in the third quarter of this year, following
satisfaction of all conditions precedent and receipt of the necessary
regulatory approvals.
“The sale of Waihi further strengthens Newmont’s balance sheet and
improves our financial flexibility as we continue to sell select assets
for cash at fair value,” said Randy Engel, Newmont’s Executive Vice
President for Strategic Development.
Waihi is located approximately 150 kilometers southeast of Auckland in
New Zealand. Gold was first discovered and mined in the area in 1878.
The Martha open pit mine began operations in 1987 and was acquired by
Newmont in 2002 during the merger with Normandy. Waihi produced
approximately 132,000 ounces of gold in 2014.
About Newmont
Newmont is a leading gold and copper producer. The Company employs
approximately 28,000 employees and contractors, with the majority
working at managed operations in the United States, Australia, New
Zealand, Ghana, Peru, Suriname and Indonesia. Newmont is the only gold
producer listed in the S&P 500 index and in 2007 became the first named
to the Dow Jones Sustainability World Index. The Company is an industry
leader in value creation, supported by its leading technical,
environmental, social and safety performance. Newmont was founded in
1921 and has been publicly traded since 1925.
Cautionary Statement Regarding Forward-Looking Statements:
This release contains “forward-looking statements” within the meaning of
applicable securities laws that are intended to be covered by the safe
harbors created by those laws, including, without limitation, statements
regarding future financial performance, future balance sheet strength,
future asset sales, future development of Waihi, future statements
relating to the closing of the transaction and other statements that are
not historical facts. While such forward-looking statements are
expressed by Newmont as stated in this release in good faith and
believed by Newmont to have a reasonable basis, they are subject to
important risks and uncertainties. Closing of the transaction remains
subject to approval of applicable governmental or regulatory
authorities, the receipt of all required third party approvals, and the
satisfaction or waiver of certain other conditions contemplated by the
agreement. A failure to meet such conditions may result in a delay or
termination of the contemplated transaction. As such, no guarantees can
be made with respect to future performance or the closing of the
contemplated transaction. As a result, the results or events predicted
in these forward-looking statements may differ materially from actual
results or events. Newmont does not undertake any obligation to release
publicly revisions to any forward-looking statement or to comment on
expectations of, or statements made by OceanaGold or other third parties
in respect of the transaction, except as may be required under
applicable securities laws. Investors should not assume that any lack of
update to a previously issued forward-looking statement constitutes a
reaffirmation of that statement. Continued reliance on forward-looking
statements is at investors' own risk.
View source version on businesswire.com: http://www.businesswire.com/news/home/20150605005807/en/
Source: Newmont Mining Corporation