Summary
Newmont Goldcorp Corporation (formerly Newmont Mining Corporation) announced the successful conclusion of its joint venture transaction with Barrick Gold Corporation on July 1, 2019. This joint venture, named Nevada Gold Mines LLC, combines specified Nevada operations and assets of both companies. Barrick will own 61.5% and operate the joint venture, while Newmont Goldcorp will hold a 38.5% stake. In conjunction with the transaction, Newmont Goldcorp and its subsidiary, Newmont USA Limited (NUSA), have entered into a First Supplemental Indenture. This agreement involves Nevada Gold Mines assuming NUSA's covenants and conditions related to Newmont Goldcorp's 5.875% Notes due 2035. Nevada Gold Mines will provide a full and unconditional guaranty for these obligations, resulting in joint and several liability between NUSA and Nevada Gold Mines for Newmont Goldcorp's obligations under the indenture and notes.
Key Highlights
- 1Joint Venture Finalized: Newmont Goldcorp and Barrick have successfully completed their joint venture for Nevada operations.
- 2Nevada Gold Mines Formed: The new entity, Nevada Gold Mines LLC, is now operational.
- 3Ownership Structure: Barrick Gold will own 61.5% and operate the joint venture, while Newmont Goldcorp will own 38.5%.
- 4Debt Guaranty Update: Nevada Gold Mines has assumed obligations and provided a guaranty for Newmont Goldcorp's outstanding 5.875% Notes due 2035.
- 5Joint and Several Liability: Both NUSA and Nevada Gold Mines are now jointly and severally liable for the guaranteed debt.
- 6Disclosure Timing: This information is being furnished under Regulation FD and is not deemed 'filed' for purposes of Section 18 of the Exchange Act.