By Cassandra Jaramillo
Gold and copper producer Newmont Mining Corp. said Friday that
it had agreed to sell its Waihi operations in New Zealand to
OceanaGold Corp. for $101 million.
Newmont, which is based in Greenwood Village, Colo., said the
deal strengthens its balance sheet and gives it more financial
flexibility. In addition to the $101 million, the deal also
includes a $5 million contingent payment and a 1% royalty on a
recent discovery north of Waihi's current operations.
The New Zealand operations in Waihi produced approximately
132,000 ounces of gold in 2014, the company said. OceanaGold will
acquire all of Waihi's mining assets and liabilities.
The boards of each company have approved the deal, which is
expected to close later this year.
Shares of Newmont slipped 3.8% to 25.79 in midday trading amid a
broader selloff in mining stocks.
Write to Cassandra Jaramillo at cassandra.jaramillo@wsj.com
Access Investor Kit for OceanaGold Corp.
Visit
http://www.companyspotlight.com/partner?cp_code=P479&isin=AU000000OGC7
Access Investor Kit for OceanaGold Corp.
Visit
http://www.companyspotlight.com/partner?cp_code=P479&isin=CA6752221037
Access Investor Kit for Newmont Mining Corp.
Visit
http://www.companyspotlight.com/partner?cp_code=P479&isin=US6516391066
Subscribe to WSJ: http://online.wsj.com?mod=djnwires