DENVER--(BUSINESS WIRE)--
Newmont
Mining Corporation (NYSE: NEM) (Newmont or the Company) today
announced that it has entered into an agreement to sell its royalty
portfolio (the Transaction) to Maverix
Metals Inc. (TSX-V: MMX) (Maverix), an emerging precious metals
royalty and streaming company. In connection with the Transaction,
Newmont will receive 60 million Maverix common shares, representing an
ownership interest of approximately 28 percent; $17 million in cash; and
warrants for an additional 10 million common shares.
Newmont’s royalty portfolio includes 54 precious metals and industrial
minerals royalties, including royalties at TMAC Resources’ Hope Bay mine
in Canada and Premier Gold’s McCoy Cove project in Nevada.
“Our strategic partnership and equity interest in Maverix generates
value for both companies’ shareholders,” said Randy Engel, Executive
Vice President, Strategic Development. “Maverix’s management team has a
strong track record of managing and growing high-quality royalty and
streaming assets in favorable mining districts on four continents.”
In connection with the Transaction, the parties will enter into a
shareholder agreement which will entitle Newmont to a seat on Maverix’s
Board of Directors and pre-emptive rights to participate in future
financings to maintain the Company’s ownership stake. Newmont’s
strategic partnership will provide ongoing exposure to Maverix’s growing
portfolio, which currently includes 27 high-quality royalties and
streams, 10 of which are on producing mines. Closing of the Transaction
is expected to occur in the second quarter of 2018.
About Newmont
Newmont is a leading gold and copper producer. The Company’s operations
are primarily in the United States, Australia, Ghana, Peru and Suriname.
Newmont is the only gold producer listed in the S&P 500 Index and was
named the mining industry leader by the Dow Jones Sustainability World
Index in 2015, 2016 and 2017. 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.
Legal Cautionary Statements
Upon completion of the sale, Newmont will have acquired ownership of 60
million common shares of Maverix. The common shares to be acquired by
Newmont represent approximately 28 percent of the issued and outstanding
common shares of Maverix. Assuming full exercise of the warrants,
Newmont will hold 70 million common shares, which would represent
approximately 31 percent of the issued and outstanding common shares of
Maverix. Prior to this acquisition, Newmont did not own any securities
of Maverix. Newmont acquired the common shares for investment purposes.
Newmont will evaluate its investment in Maverix from time to time and
may, based on such evaluation, market conditions and other
circumstances, increase or decrease shareholdings as circumstances
require, subject to the terms of the investment agreement. A copy of the
early warning report filed by Newmont in connection with the acquisition
will be available on Maverix’s SEDAR profile. In order to obtain a copy
of the early warning report, please contact Jessica Largent, Vice
President, Investor Relations at Newmont, at telephone number:
303.837.5484. Newmont’s head office is located at 6363 South Fiddler’s
Green Circle, Suite 800, Greenwood Village, CO 80111.
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 Section 27A of the U.S. Securities Act of 1933, as
amended, Section 21E of the U.S. Securities Exchange Act of 1934, as
amended, and other securities legislation, including statements that use
forward-looking terminology such as “may,” “will,” “expect,”
“anticipate,” “potential,” “mission” or other variations thereof or
comparable terminology. Such forward-looking statements may include,
without limitation, statements regarding the anticipated closing of the
Transaction, execution of the shareholders agreement, the receipt by
Newmont of the consideration and future value creation and returns in
connection with the Transaction, and are based on current expectations
that involve a number of risks and uncertainties. Forward-looking
statements are subject to other factors that could cause actual results
to differ materially from expected results. Investors should not place
undue reliance on forward-looking statements. Factors that could cause
actual results to differ materially from any forward-looking statement
include, but are not limited to, the failure to receive regulatory
approval for and the inability to close the Transaction. For a
discussion of such risks relating to Newmont’s business and other
factors, see the Company’s Form 10-K, filed on or about February 22,
2018, with the Securities and Exchange Commission (“SEC”) under the
headings “Risk Factors” and “Forward-Looking Statements,” and other SEC
filings. Newmont does not undertake any obligation to release publicly
revisions to any forward-looking statement to reflect events or
circumstances after the date of this news release, or to reflect the
occurrence of unanticipated events, 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.
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Source: Newmont Mining Corporation