DENVER--(BUSINESS WIRE)--Newmont Corporation (NYSE: NEM, TSX:NGT) and GT Gold Corp. (TSX-V: GTT) announced that the companies have entered into a binding agreement in which Newmont will acquire the remaining 85.1% of common shares of GT Gold not already owned by Newmont. Under the terms of the agreement, Newmont will acquire each GT Gold share at a price of C$3.25, for cash consideration of approximately US$311 million (C$393.0 million).
“We are excited to expand our world-class portfolio to include the Tatogga project in the Tahltan Territory located in the highly sought-after Golden Triangle district of British Columbia, Canada” said Newmont President and CEO Tom Palmer. “Newmont recognizes that our relationships with Indigenous, First Nations and host communities are critical to the way we operate. We are committed to continue building a constructive and respectful relationship with the Tahltan Nation, including with the community of Iskut, which is near the project, in anticipation of exploring this highly prospective area. We understand and acknowledge that Tahltan consent is necessary for advancing the Tatogga project and we will partner with the Tahltan Nation at all levels, and with the Government of British Columbia to ensure a shared path forward.”
Tahltan Central Government (TCG) President Chad Norman Day stated the following regarding the acquisition: “The Tahltan Central Government recognizes Newmont’s purchase of GT Gold and the Tatogga project. Newmont is a major international mining company who already has an established relationship with the Tahltan Nation as Newmont owns 50 percent of the Galore Creek Mining Corporation, whose project is in Tahltan Territory. TCG understands the sensitivities of all mining projects and has communicated with Newmont that Tahltan consent is a requirement for the advancement of any project in Tahltan Territory. The TCG looks forward to working with Newmont in a respectful, meaningful and mutually beneficial way.”
The Tatogga project, including the primary Saddle North deposit, has the potential to contribute significant gold and copper annual production at attractive all-in sustaining costs over a long mine life. In addition to the known deposits at Saddle North, there are further exploration opportunities throughout the land package. The acquisition of the Tatogga project adds to Newmont’s existing interest in the prospective Golden Triangle through the company’s 50 percent ownership in the Galore Creek project.
The transaction is expected to close in the second quarter of 2021, subject to meeting normal closing conditions.
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 expertise. Newmont was founded in 1921 and has been publicly traded since 1925.
At Newmont, our purpose is to create value and improve lives through sustainable and responsible mining. To learn more about Newmont’s sustainability strategy and initiatives, visit us at www.newmont.com.
About GT Gold
GT Gold is engaged in advancing its wholly-owned, 47,500 hectare Tatogga property, located in the renowned “Golden Triangle” near Iskut, British Columbia. To date, GT Gold has made two significant discoveries on the Tatogga property, “Saddle South”, a precious metal rich vein system and “Saddle North”, a gold-rich copper porphyry system.
About the Tahltan Nation
The Tahltan Central Government (TCG) is the administrative governing body of the Tahltan Nation. The Iskut Band and the Tahltan Band continue to govern Tahltan interests with respect to the Indian Act in the communities of Iskut, Dease Lake and Telegraph Creek. The TCG is the representative government of the Tahltan Nation with respect to the inherent and collective Aboriginal title and rights shared by all Tahltan people.
The Tahltan Nation’s Territory spans 95,933 square km of Northwest British Columbia or the equivalent of 11 percent of the province. Tahltan Territory includes 70 per cent of BC’s Golden Triangle – a world-class mining jurisdiction with a thriving mineral exploration sector. For more information, visit: www.tahltan.org.
Legal Cautionary Statement:
This release contains “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” or comparable terminology. Forward-looking statements used herein may include, without limitation, expectations regarding the completion of the GT Gold purchase transaction, timing of closing, production potential, future all-in sustaining, exploration opportunities and project pipeline development. 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 closing of the transaction remains contingent on the receipt of approval of the transaction by the Supreme Court of British Columbia and GT Gold’s shareholders, and satisfaction of other conditions precedent. As such, no guarantees can be made with respect to future performance or the closing of the contemplated transaction. For more discussion of risks and other factors that might impact future looking statements, see the Company’s 2020 Annual Report on Form 10-K under the heading “Risk Factors”, filed with the U.S. Securities and Exchange Commission (the “SEC”) and available on the SEC website or www.newmont.com, as well as the Company’s other SEC filings. 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.