Newmont Mining to Sell Waihi Gold Operations to OceanaGold

Newmont Mining Corp. (NYSE:NEM) announced that it’s entered into a definitive, binding agreement under which it will sell OceanaGold Corp. (TSX:OGC,ASX:OGC) its New Zealand-based Waihi gold operations.

As quoted in the press release:

Terms of sale include cash proceeds of US$101 million, a US$5 million contingent payment, and a one percent Net Smelter Royalty on a recent discovery north of Waihi’s current operations. OceanaGold will acquire all of Waihi’s open pit and underground mining assets and liabilities.

Approvals have been secured from each company’s Board, and closing of the deal is anticipated in the third quarter of this year, following satisfaction of all conditions precedent and receipt of the necessary regulatory approvals.

Randy Engel, Newmont’s executive vice president for strategic development, commented:

The sale of Waihi further strengthens Newmont’s balance sheet and improves our financial flexibility as we continue to sell select assets for cash at fair value.

Click here to read the full Newmont Mining Corp. (NYSE:NEM) press release.

Newmont is a leading gold and copper producer. The Company employs approximately 28,000 employees and contractors, with the majority working at managed operations in the United States, Australia, New Zealand, Ghana, Peru, Suriname and Indonesia. Newmont is the only gold producer listed in the S&P 500 index and in 2007 became the first named to the Dow Jones Sustainability World Index. The Company is an industry leader in value creation, supported by its leading technical, environmental, social and safety performance. Newmont was founded in 1921 and has been publicly traded since 1925.