Summary
Newmont Mining Corporation reported on December 20, 2004, the completion of the sale of its 80% interest in Thracean Gold Mining S.A. (TGM), which holds the Perama Hill Project in Greece, to Frontier Pacific Mining Corporation. This transaction, which was initially agreed upon in November 2003 and finalized through a Share Purchase Agreement in April 2004, also included the sale of the remaining 20% interest by S&B Industrial Minerals S.A. The deal involved an initial non-refundable deposit and a subsequent closing payment, with further contingent payments tied to the start of commercial production. Newmont also retains a 2.0% net smelter return royalty on future production from the Perama Hill Project.
Key Highlights
- 1Newmont Mining Corporation has divested its 80% stake in Thracean Gold Mining S.A. (TGM), the owner of the Perama Hill Project in Greece.
- 2The buyer of TGM is Frontier Pacific Mining Corporation, acquiring 100% of the company by also purchasing the 20% interest held by S&B Industrial Minerals S.A.
- 3The transaction includes an initial deposit of $1.0 million ($0.8 million attributable to Newmont) and a closing payment of $11.0 million ($8.8 million for Newmont).
- 4Contingent payments totaling $3.0 million ($2.4 million for Newmont) are due upon the commencement of commercial production at the Perama Hill Project.
- 5Newmont will retain a 2.0% net smelter return royalty on any future production from the Perama Hill Project.
- 6Newmont also participated in Frontier's financing for the acquisition, contributing CDN$2.1 million (approximately $1.6 million).