The Conversation (0)
Fresnillo plc (LSE:FRES) announced that it has entered into a binding agreement to acquire Newmont Mining Corp.’s (NYSE:NEM) 44-percent interest in the Penmont joint venture (JV) for US$450 million.
Fresnillo plc (LSE:FRES) announced that it has entered into a binding agreement to acquire Newmont Mining Corp.’s (NYSE:NEM) 44-percent interest in the Penmont joint venture (JV) for US$450 million. If the plan goes through, Fresnillo will hold 100 percent of the JV.
Highlights include:
- Consolidates control of producing and exploration assets already operated by Fresnillo and builds on the Company’s leading position in the Herradura Corridor, one of Mexico’s most prospective gold belts
- Enables Fresnillo to implement strategy of developing quality assets in a key growth area and continue aggressive regional exploration programme:
- o Mega Centauro and Centauro Deep advanced exploration projects with near-term production potential; lower risk as they are expansions of current ongoing operations
- o three key exploration projects: Tajitos, Bellavista and Las Norias
- o multiple additional exploration targets identified
- The acquisition is consistent with previously announced growth strategy and meets Fresnillo’s key acquisition criteria:
- o transaction is immediately earnings accretive, with further upside potential from Mega Centauro and Centauro Deep
- o average life of mine All-In Sustaining Costs (AISC) on current and future production is expected to be low
- o significant exploration and development upside potential
- Adds 2.0 million ounces to reserve and 5.1 million ounces to resource base
Click here to read the full Fresnillo plc (LSE:FRES) press release.
