Newmont to Sell 50% Interest in Australian Open Pit Gold Mine

SEATTLE (Scrap Monster):  The American mining major Newmont Goldcorp Corporation announced its decision to sell 50% interest in Kalgoorlie Consolidated Gold Mines (KCGM) and associated assets to Australian Northern Star Resources Limited. The transaction is expected to close in early-2020, subject to receipt of ministerial consent.

Under the terms of the agreement, the stake sale will fetch $800 million in cash to Newmont. This is inclusive of $25 million payment, which will be credited against the purchase price for the power business. In return, Northern Star will receive specified exploration tenements, transitional services support and an option to negotiate exclusively for 120 days the purchase of Newmont’s power business.

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Commenting on the deal, Tom Palmer, President and CEO, Newmont Goldcorp noted that the transaction will help the company to further strengthen its financial position. The net proceeds from asset sales have exceeded $1.4 billion in 2019, he added.

The sale of KCGM assets will further streamline Newmont’s portfolio. The company now owns 12 top-tier assets located on four different continents.