Newmont Mining Corporation (NYSE: NEM) (“Newmont” or “the Company”)
announced it has entered into a binding agreement with Northern Star
Resources Limited (“Northern Star”) to sell the Jundee underground gold
mine in Australia for total proceeds of approximately US$91 million,
comprised of cash at closing of approximately US$77 million plus a
further payment of approximately US$14 million for working capital.
Northern Star is acquiring all of Jundee’s assets and liabilities
including all environmental and employee obligations.
“We are pleased to announce our agreement with Northern Star. It
demonstrates our continuing efforts to optimize our portfolio and
increase shareholder value by focusing on lower cost, longer life
operations,” said Randy Engel, Newmont’s Executive Vice President for
Strategic Development. “The agreement with Northern Star builds on
Newmont’s other, non-core asset sales, including its stake in Canadian
Oil Sands, the Midas underground mine in Nevada and the Company’s equity
interest in Paladin Energy Limited. Combined with the pending Jundee
transaction, cash proceeds received from these sales total approximately
US$800 million.”
The sale is expected to close in early July. Closure is contingent upon
Northern Star securing financing and subject to a third party right of
refusal.
The Jundee gold mine is located 520 kilometers north of Kalgoorlie in
Western Australia. Production began in 1995 from a complex of open pit
mines that have now ceased operation. Underground mining began in 1997
and continues today. All existing fixed plant and onsite equipment owned
by Newmont will be transferred to Northern Star and the majority of
Jundee’s non-contract staff will be offered continuing employment.
Jundee produced 279,000 ounces of gold in 2013.
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 30,000 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.
Cautionary Statement
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, the timing of the
closing proposed transaction, the satisfaction of closing conditions,
future asset sales and portfolio optimization and other statements that
are not historical facts. While such forward-looking statements are
expressed by Newmont as stated in this release in good faith and
believed by Newmont to have a reasonable basis, they are subject to
important risks and uncertainties including, without limitation, the
satisfaction or waiver of certain conditions contemplated by the
agreement with Northern Star, whether Northern Star will be able to
secure the necessary financing, whether the parties will be able to
reach agreement on a third party right of refusal and the other factors,
risks, uncertainties and assumptions, 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. Newmont does not undertake any obligation to release
publicly revisions to any forward-looking statement or to comment on
expectations of, or statements made by Northern Star or third parties in
respect of the proposed transaction, except as may be required under
applicable securities laws. 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 2014