Newmont Mining to Buy Cripple Creek and Victor Mine from AngloGold Ashanti

Mining Weekly reported that Newmont Mining (NYSE:NEM) will buy AngloGold Ashanti’s (NYSE:AU) Cripple Creek and Victor mine, the largest gold mine in Colorado, for $820 million. AngloGold will retain a 2.5 percent NSR on gold output from future underground ore at the mine.

As quoted in the press release:

The CC&V openpit mine was currently the largest Colorado gold producer, accounting for about 211 000 oz of gold and about 110 000 oz of silver last year.

AngloGold, the world’s third largest gold miner by output, in April, revealed that it was looking for a partner or buyer for the mine as it attempted to reduce its $3.1-billion debt by at least $1-billion over the next one to three years.

Large gold producers globally, including world leader by output Barrick Gold, were selling noncore assets in efforts to reduce debt and repair balance sheets in the sustained weak metals price environment.

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