Newmont Commits to Sale of Stake in Continental Gold to Generate $260 Million in Cash Proceeds
December 02 2019 - 8:50AM
Business Wire
Newmont (NYSE: NEM, TSX: NGT) (Newmont or the Company) today
announced it has entered into a contractual arrangement to support
Zijin Mining Group’s bid to acquire Continental Gold Inc.
(Continental) by selling its 19.9 percent equity stake and its
convertible bond for $260 million. With the announced sale of Red
Lake for $375 million, the Company expects to realize $635 million
in total cash proceeds when the transactions close in the first
quarter 2020.
“Newmont technical teams identified the potential of the deposit
and have supported Continental as it advanced Buritica toward
production,” said Tom Palmer, Newmont Chief Executive Officer and
President. “While we have valued our partnership with Continental,
this is an appropriate time to sell into a strong bid and remain
focused on operating our world-class portfolio of assets,
optimizing our leading project pipeline and investing in growing
Reserves and Resources.”
Newmont intends to use proceeds from the transaction to support
the Company’s priorities to return capital to shareholders, invest
in profitable projects and strengthen the balance sheet.
The proposed transaction involves Newmont tendering its 19.9
percent equity stake and selling its convertible bond, thereby
exiting from its shareholding in and financing arrangements with
Continental. The transaction, which is expected to close in the
first quarter 2020, is subject to Continental shareholder approval
and certain closing conditions.
About Newmont
Newmont is the world’s leading gold company and a producer of
copper, silver, zinc and lead. The Company’s world-class portfolio
of assets, prospects and talent is anchored in favorable mining
jurisdictions in North America, South America, Australia and
Africa. Newmont is the only gold producer listed in the S&P 500
Index and is widely recognized for its principled environmental,
social and governance practices. The Company is an industry leader
in value creation, supported by robust safety standards, superior
execution and technical proficiency. Newmont was founded in 1921
and has been publicly traded since 1925.
Cautionary Statement Regarding Forward-Looking
Statements
This release contains “forward-looking statements” within the
meaning of Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as amended,
which are intended to be covered by the safe harbors provided for
under such sections. Forward-looking statements used herein may
include, without limitation, estimates and expectations regarding
the completion of the Zijin Mining purchase, the tender of
Newmont’s equity stake and sale of convertible bond, receipt of
related proceeds from the Zijin Mining transaction and the pending
Red Lake sale transaction, anticipated timing of closing and
receipt of cash proceeds, anticipated use proceeds, future return
capital to shareholders and investment in projects, future balance
sheet strength, and delivery of the Company’s business plan. Where
the Company expresses an expectation or belief as to future events
or results, such expectation or belief is expressed in good faith
and believed to have a reasonable basis. However, such statements
are subject to risks, uncertainties and other factors, which could
cause actual results to differ materially from future results
expressed, projected or implied by the “forward-looking
statements.” The Continental transaction remains subject to the
successful progression of the Zijin Mining bid, including receipt
of Continental shareholder approval for the related arrangement
agreement, the receipt of certain regulatory, court and stock
exchange approvals and other closing conditions. The closing of the
Red Lake transaction remains contingent on the receipt of
regulatory approvals and satisfaction of conditions precedent. As
such, no guarantees can be made with respect to the closing of the
transactions or receipt of related proceeds. Estimates or
expectations of future events are based upon certain assumptions,
which may prove to be incorrect. For a more detailed discussion of
risks and other factors that might impact future looking
statements, see the Company’s Quarterly Report on Form 10-Q for the
quarter ended June 30, 2019 under the heading “Risk Factors”, filed
with the U.S. Securities and Exchange Commission (the “SEC”) and
available on the SEC website or www.newmontgoldcorp.com, as well as
the Company’s other SEC filings, including the most recent
Quarterly Report on Form 10-Q for the quarter ended September 30,
2019. The Company does not undertake any obligation to release
publicly revisions to any “forward-looking statement,” including,
without limitation, outlook, to reflect events or circumstances
after the date of this news release, or to reflect the occurrence
of unanticipated events, except as may be required under applicable
securities laws. Investors should not assume that any lack of
update to a previously issued “forward-looking statement”
constitutes a reaffirmation of that statement. Continued reliance
on “forward-looking statements” is at investors' own risk.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20191202005545/en/
Media Contact Omar Jabara
303.837.5114 omar.jabara@newmont.com
Investor Contact Jessica Largent
303.837.5484 jessica.largent@newmont.com
Newmont (NYSE:NEM)
Historical Stock Chart
From Mar 2024 to Apr 2024
Newmont (NYSE:NEM)
Historical Stock Chart
From Apr 2023 to Apr 2024