8-KMaterial AgreementsExhibits & Filings

NEWMONT Corp /DE/ 8-K Report, Material Agreement (Jan 27, 2009)

Filed January 27, 2009For Securities:NEMNEMCL

Summary

Newmont Mining Corporation (NEM) announced on January 27, 2009, that it has entered into a definitive agreement to acquire AngloGold Ashanti Australia Limited's 33.33% stake in the Boddington gold project in Western Australia. This acquisition, expected to close in March 2009, will result in Newmont owning 100% of the Boddington project. The transaction involves a total consideration of $990 million in cash, plus a royalty payment tied to the gold price and production levels. This move significantly expands Newmont's ownership and control over a key asset. This full ownership of the Boddington project is a strategic move for Newmont, enhancing its operational control and potential profitability from this Australian gold asset. Investors should note the financial commitment involved, which includes a substantial cash outlay and a performance-based royalty, indicating the company's confidence in the project's future economic viability. The closing of the deal is subject to regulatory approvals and third-party consents, which will be closely watched.

Key Highlights

  • 1Newmont to acquire AngloGold Ashanti's 33.33% interest in the Boddington project, achieving 100% ownership.
  • 2Transaction value includes $750 million cash at closing and $240 million payable later in 2009 (cash or stock).
  • 3A royalty agreement is in place, giving AngloGold 50% of the operating margin exceeding $600 per ounce on one-third of production, capped at $100 million.
  • 4The acquisition is expected to close in March 2009, subject to regulatory approvals (Australia, South Africa) and third-party consents.
  • 5The Boddington project is located in Western Australia.
  • 6This move signifies a significant increase in Newmont's stake and control over a major gold asset.

Frequently Asked Questions

This 8-K filing announces Newmont Mining Corporation's entry into a material definitive agreement to acquire the remaining 33.33% interest in the Boddington gold project, thereby achieving full ownership.

The total consideration is $750 million in cash payable at closing, $240 million payable in December 2009 (at Newmont's option, in cash, stock, or a combination), and a quarterly royalty payment tied to production margins, capped at $100 million.

Yes, the transaction is subject to the satisfaction or waiver of certain conditions, including approvals from the Australian Foreign Investment Review Board, the Western Australia Ministry of Mines, the South African Reserve Bank, and the receipt of consents and agreements from third parties.

The transaction is expected to close in March 2009.