Newmont to Sell Continental Gold Stake as Part of Takeover Bid
December 02 2019 - 9:49AM
Dow Jones News
By Micah Maidenberg
Newmont Goldcorp Corp. (NEM) plans to sell its stake in
Continental Gold Inc. (CNL.T) in connection with a Chinese
company's proposed deal to takeover that firm.
Newmont Monday said it signed a contract to support Fujian,
China-based Zijin Mining Group Co.'s proposed $1.4 billion Canadian
dollars acquisition of Continental, which has been developing a
gold mine in Colombia.
Denver-based Newmont owns a 19.9% equity stake in Continental,
Newmont said Monday. It will sell that holding as well as a
convertible bond for $260 million and use the proceeds for
investments, to support returning capital to shareholders and to
bolster its balance sheet.
"While we have valued our partnership with Continental, this is
an appropriate time to sell into a strong bid," Newmont Chief
Executive Tom Palmer said in a statement.
Zijin's proposed bid for Continental values the latter company's
shares at C$5.50.
Write to Micah Maidenberg at micah.maidenberg@wsj.com
(END) Dow Jones Newswires
December 02, 2019 09:34 ET (14:34 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
Newmont (NYSE:NEM)
Historical Stock Chart
From Aug 2024 to Sep 2024
Newmont (NYSE:NEM)
Historical Stock Chart
From Sep 2023 to Sep 2024