Newmont Mining Corporation (NYSE:NEM) (“Newmont” or “the Company”) today
announced the signing of a Letter of Intent (“LOI”) to sell Newmont’s
Midas operation in Nevada to Waterton Global Resource Management, Inc.
(“Waterton”). The proposed transaction is subject to customary closing
conditions, including execution and delivery of an acquisition
agreement, completion of confirmatory due diligence and receipt of all
required regulatory and third party approvals.
“Consistent with our strategy to deliver value to our shareholders and
strengthen our portfolio by divesting non-core assets, we are working
with Waterton to explore the sale of our Midas operation in Nevada,”
said Randy Engel, Executive Vice President, Strategic Development of
Newmont. “Waterton has established a presence in Nevada and is well
positioned to enable Midas’s success over the long term by using its
processing, and other assets, to support Waterton’s operations in
Nevada.”
Mr. Isser Elishis, Managing Partner and Chief Investment Officer of
Waterton stated, "We are very excited to be working with Newmont to
develop the full potential of both the Midas and Hollister operations.
The completion of our acquisition of the Midas Operation will add
another high-quality gold mining operation to our portfolio of North
American operations.”
The parties have agreed that the LOI will terminate on October 14, 2013,
unless extended by mutual agreement of both parties, or earlier
superseded by the acquisition agreement. There can be no assurance that
the proposed transaction will be completed.
About Newmont
Founded in 1921 and publicly traded since 1925, Newmont is a leading
producer of gold and copper. Headquartered in Colorado, the Company has
approximately 40,000 employees and contractors, with the majority
working at managed operations in the United States, Australia, New
Zealand, Peru, Indonesia and Ghana. Newmont is the only gold company
listed in the S&P 500 index and in 2007 became the first gold company
selected to be part of the Dow Jones Sustainability World Index. Newmont
is an industry leader in value creation, supported by its leading
technical, environmental, and health and safety performance.
About Midas
The Midas underground mine is located in north central Nevada, between
Elko and Reno. Newmont acquired Midas through its merger with Normandy.
The mine currently employs approximately 200 people.
Please download the free Newmont Investor Relations iPad application
from the Apple Online App Store, keyword search “Newmont.”
About Waterton Global
Waterton Global Resource Management Inc. is a leading mining-focused
private equity investment firm dedicated to developing high quality
precious metals projects located in stable jurisdictions. Waterton’s
cross-functional, fully-integrated, in-house team of professionals have
significant mining, financial and legal expertise. Waterton’s proactive
approach to asset management, significant sector knowledge and ability
to leverage extensive industry relationships has resulted in a strong
track record of managing investments in the precious metals sector.
Cautionary Statements
This release contains “forward-looking statements” within the meaning of
applicable securities laws that are intended to be covered by the safe
harbors created by those laws, including statements that use
forward-looking terminology such as “may”, “will”, “expect”,
“anticipate”, “believe”, “continue”, “potential” or the negative thereof
or other variations thereof or comparable terminology. Such
forward-looking statements may include, without limitation, statements
regarding the completion of the proposed transaction and other
statements that are not historical facts. While such forward-looking
statements are expressed by Newmont or by Waterton, as stated in this
release, in good faith and believed by the applicable party to have a
reasonable basis, they are subject to important risks and uncertainties
including, without limitation, approval of applicable governmental or
regulatory authorities, the receipt of all required third party
approvals, the satisfaction or waiver of certain other conditions
contemplated by the LOI, the inability to realize expected synergies or
cost savings, errors in estimates of reserves or future production,
parts, equipment, labor or power shortages or other increases in costs,
mining accidents or other adverse events, changes in applicable laws or
regulations, competition from other mining companies, and the other
risks disclosed in Newmont’s public filings, any or all of which could
cause actual results to differ materially from future results expressed,
projected or implied by the forward-looking statements. As a result of
these risks and uncertainties, the proposed transaction could be
modified, restructured or not be completed, and the results or events
predicted in these forward-looking statements may differ materially from
actual results or events. These forward-looking statements are not
guarantees of future performance, given that they involve risks and
uncertainties. Neither Newmont nor Waterton is affirming or adopting any
statements attributed to the other in this release or made by the other
party outside of this release. Neither Newmont nor Waterton undertakes
any obligation to release publicly revisions to any forward-looking
statement, except as may be required under applicable securities laws,
or to comment on expectations of, or statements made by the other party
or third parties in respect of the proposed transaction. 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.
Copyright Business Wire 2013