8-KLeadership ChangesMaterial AgreementsRegulation FD+1

NEWMONT Corp /DE/ 8-K Report, Material Agreement (Nov 30, 2007)

Filed November 30, 2007For Securities:NEMNEMCL

Summary

Newmont Mining Corporation (Newmont) announced a significant divestiture through an Acquisition Agreement with Franco-Nevada Corporation, filed on November 30, 2007. Newmont is selling its Royalty Portfolio, which includes certain mineral royalties and oil and gas interests, for an estimated value of $1.3 billion. This strategic move is intended to monetize these assets to fund the development of Newmont's core gold business. The transaction is structured as a sale to Franco-Nevada, with Newmont receiving cash consideration derived from Franco-Nevada's initial public offering in Canada, shares issued to Franco-Nevada's management, and a committed bank facility. The deal is expected to close around December 20, 2007. Newmont anticipates recording a substantial pre-tax gain of approximately $0.95 billion from discontinued operations in the fourth quarter of 2007.

Key Highlights

  • 1Newmont to sell its Royalty Portfolio to Franco-Nevada for approximately $1.3 billion.
  • 2Proceeds will be used to fund the development of Newmont's core gold mining business.
  • 3Transaction involves cash consideration from Franco-Nevada's IPO, management share issuance, and bank financing.
  • 4Expected closing date for the transaction is December 20, 2007.
  • 5Newmont anticipates a pre-tax gain of approximately $0.95 billion from discontinued operations.
  • 6Pierre Lassonde resigned from Newmont's board and will serve as Non-Executive Chairman of Franco-Nevada.
  • 7Consulting agreement with Pierre Lassonde has been terminated.

Frequently Asked Questions

The primary purpose is to monetize Newmont's Royalty Portfolio to generate capital for the development of its core gold mining business.

Newmont will receive cash consideration primarily from the net proceeds of Franco-Nevada's initial public offering in Canada, proceeds from shares issued to Franco-Nevada's management, and a $140 million draw from a committed Franco-Nevada bank facility.

Newmont expects to record a pre-tax gain from discontinued operations of approximately $0.95 billion in the fourth quarter of 2007.

Pierre Lassonde resigned from Newmont's board of directors and will take on the role of Non-Executive Chairman of Franco-Nevada Corporation, aligning with the strategic divestiture.