Summary
Newmont Mining Corporation announced on June 5, 2015, that it has entered into a definitive agreement to sell its Newmont Waihi Gold Limited subsidiary (Waihi) to OceanaGold Corporation. This transaction is expected to generate immediate cash proceeds of $101 million, with an additional $5 million contingent payment and a 1% Net Smelter Royalty on a recent discovery. The sale includes all of Waihi's mining assets and liabilities, both open pit and underground. This divestiture aligns with Newmont's strategic focus on optimizing its portfolio and potentially strengthening its financial position. Investors should note that the transaction is subject to customary closing conditions, including regulatory approvals, and is anticipated to close in the third quarter of 2015. The company has also included a cautionary statement regarding forward-looking statements, highlighting the risks and uncertainties that could affect the closing of this deal.
Key Highlights
- 1Newmont signed a definitive agreement to sell its Waihi subsidiary to OceanaGold.
- 2The sale price includes $101 million in cash, a $5 million contingent payment, and a 1% Net Smelter Royalty.
- 3OceanaGold will acquire all of Waihi's open pit and underground mining assets and liabilities.
- 4The transaction is expected to close in the third quarter of 2015.
- 5The sale is subject to satisfaction or waiver of certain conditions, including regulatory approvals.
- 6The divestiture represents a portfolio optimization move for Newmont.