Summary
Newmont Mining Corporation (NEM) announced a significant transaction on February 3, 2011, involving the acquisition of Fronteer Gold Inc. This transaction is structured as a plan of arrangement, where Newmont will acquire all outstanding common shares of Fronteer. As part of the deal, Fronteer shareholders will receive $14.00 in cash and one common share of a newly formed entity, Pilot Gold Inc., for each Fronteer share they own. Pilot Gold Inc. will house certain exploration assets of Fronteer, with former Fronteer shareholders retaining a substantial 80.1% interest and Newmont holding the remaining 19.9% indirectly. The filing also indicates that a detailed investor presentation was made concerning the arrangement and its strategic implications for Newmont. Further details regarding the arrangement agreement are expected to be filed in a subsequent 8-K.
Key Highlights
- 1Newmont Mining Corporation announced an agreement to acquire Fronteer Gold Inc. via a plan of arrangement.
- 2Fronteer shareholders will receive $14.00 in cash and one common share of Pilot Gold Inc. per Fronteer share.
- 3A new entity, Pilot Gold Inc., will be created to hold certain Fronteer exploration assets.
- 4Former Fronteer shareholders will own 80.1% of Pilot Gold Inc., while Newmont will indirectly own 19.9%.
- 5An investor presentation was released alongside the announcement to detail the transaction and Newmont's strategy.
- 6The full arrangement agreement details will be provided in a future 8-K filing.