Newmont Announces Acquisition of Shares and Warrants of Loncor Resources Inc.
DENVER, Feb 19, 2010 /PRNewswire via COMTEX News Network/ -- Newmont Mining Corporation ("Newmont") (NYSE: NEM) announced today that its wholly owned subsidiary, Newmont Mining Corporation of Canada Limited, acquired 4,000,000 units ("Units") of Loncor Resources Inc. ("Loncor") by way of private placement at a price of Cdn $1.25 per Unit for aggregate gross proceeds to Loncor of Cdn. $5,000,000. Each Unit is comprised of one common share of Loncor ("Common Share") and one-half of one Common Share purchase warrant ("Warrant") exercisable for one additional Common Share at a price of Cdn. $1.45 for a period of two years.
After giving effect to the exercise of all Warrants and assuming no other security holder converts its convertible securities, Newmont would own or control approximately 13% of the Common Shares (calculated based on 42,919,747 currently outstanding Common Shares).
Newmont acquired its securities in Loncor for investment purposes. In the future, Newmont and its affiliates may increase (through the exercise of the Warrants or otherwise) or decrease their ownership in the securities of Loncor depending on the business and prospects of Loncor as well as market conditions.
Further information (including a copy of the report to be filed with Canadian securities regulators in connection with this transaction) can be obtained by contacting:
SOURCE Newmont Mining Corporation