Newmont Completes Sale of Midas Operation
Transaction part of effort to divest non-core assets and optimize portfolio
DENVER--(BUSINESS WIRE)--Newmont Mining Corporation (NYSE: NEM) (“Newmont” or “the Company”) announced it successfully completed the sale of its Midas operation in Nevada to Klondex Mines Ltd. (TSX: KDX) (“Klondex”) for total consideration in excess of $83 million.
“This transaction demonstrates our commitment to divest non-core assets and focus on improving financial flexibility and increasing shareholder value through lower cost and longer life operations”
“This transaction demonstrates our commitment to divest non-core assets and focus on improving financial flexibility and increasing shareholder value through lower cost and longer life operations,” said Randy Engel, Newmont’s Executive Vice President, Strategic Development.
The sale, originally announced on Dec. 4, 2013, includes approximately $55 million in cash and the replacement of Newmont surety arrangements with Nevada and federal regulatory authorities in the amount of approximately $28 million. In addition, Newmont received five million common share purchase warrants of Klondex that have a 15-year term, subject to acceleration in certain circumstances, at an exercise price of C$2.15 per share.
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.
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 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, gold, silver and other metals price volatility, 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 Agreement, the inability to realize expected synergies or cost savings, estimates of reserves or future production, increases in production costs, including due to parts, equipment, labor or power shortages, variances in ore grade or recovery rate, mining accidents or other adverse events, changes in applicable laws or regulations, community relations, 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. 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 Klondex 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.