DENVER--(BUSINESS WIRE)--Newmont Corporation (NYSE: NEM, TSX: NGT) (Newmont or the Company) today announced it successfully completed the sale of its Red Lake complex in Ontario, Canada to Evolution Mining Limited (ASX: EVN) (Evolution) and received cash proceeds of $375 million with future contingent payments of up to an additional $100 million tied to new resource discoveries.
“We are pleased to complete the sale of Red Lake to a highly respected and responsible operator in Evolution. The transaction provides us ongoing exposure to future exploration upside, whilst we remain focused on our diverse global portfolio of 12 managed operations and two joint ventures, which includes eight world-class assets,” said Tom Palmer, President and Chief Executive Officer.
Under terms of the $100 million contingent payment, Evolution will pay Newmont $20 million for each one million ounces of new gold resources added to the existing Red Lake resource base over a fifteen year period. The contingent payment is applicable to the first five million ounces of new resources.
“Combined with the sale of our interests in Continental and KCGM, we have generated more than $1.4 billion in total cash proceeds, meeting our divestiture target of $1.0 to $1.5 billion in less than a year. These asset sales will support the continuation of our capital allocation priorities, which include strengthening our investment grade balance sheet, investing in our highest returning projects, and returning excess cash to our shareholders,” Palmer concluded.
Newmont is the world’s leading gold company and a producer of copper, silver, zinc and lead. The Company’s world-class portfolio of assets, prospects and talent is anchored in favorable mining jurisdictions in North America, South America, Australia and Africa. Newmont is the only gold producer listed in the S&P 500 Index and is widely recognized for its principled environmental, social and governance practices. The Company is an industry leader in value creation, supported by robust safety standards, superior execution and technical proficiency. Newmont was founded in 1921 and has been publicly traded since 1925.
This release may contain “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are intended to be covered by the safe harbors provided for under such sections. Forward-looking statements may be accompanied by terminology such as “will,” “expect,” “intend,” or comparable terminology. Forward-looking statements used herein may include, without limitation, estimates and expectations regarding the receipt of future contingent consideration, future exploration and declaration of new resources, future success and performance of Red Lake, future continuation of capital allocation priorities, future investment grade balance sheet strength, future investment in projects, and future returns to shareholders. Where the Company expresses an expectation or belief as to future events or results, such expectation or belief is expressed in good faith and believed to have a reasonable basis. However, such statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from future results expressed, projected or implied by the “forward-looking statements.” For example, the timing and amount of contingent payment will remain subject to risks and uncertainties, including whether new gold resources are added to the existing Red Lake resource base during the covered period. As such, no guarantees can be made with respect to future performance or such payments. For a discussion of risks and other factors that might impact future looking statements, see the Company’s Annual Report on Form 10-K for the year ended December 31, 2019 filed with the U.S. Securities and Exchange Commission (the “SEC”), under the heading “Risk Factors”, available on the SEC website or www.newmont.com. The Company does not undertake any obligation to release publicly revisions to any “forward-looking statement,” including, without limitation, outlook, to reflect events or circumstances after the date of this news release, or to reflect the occurrence of unanticipated events, 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.