Connect with us

Hi, what are you looking for?

StayReborn.comStayReborn.com

Investing News

Newmont Completes Divestitures With US$425 Million Sale to Discovery Silver

Newmont (TSX:NGT,NYSE:NEM) announced the final phase of its divestiture program through an agreement to sell its Porcupine operation in Ontario, Canada, to Discovery Silver (TSX:DSV,OTCQX:DSVSF).

Total consideration for the sale comes to US$425 million, comprised of US$200 million in cash to be paid upon closing, US$75 million in Discovery Silver shares and US$150 million in deferred cash payments.

The sale is anticipated to close in the first half of 2025, subject to regulatory approvals and other conditions.

According to Newmont President and CEO Tom Palmer, this divestiture represents the final phase of the company’s strategic shift to focus on Tier 1 assets, ensuring long-term operational and financial efficiency.

Palmer expressed confidence in Discovery Silver’s ability to manage the Porcupine operation responsibly, given the company’s experience and established presence in the region. The transaction concludes Newmont’s non-core asset divestiture program, which is expected to generate as much as US$4.3 billion in gross proceeds.

Newmont’s divestiture program was launched in February 2024, and targeted the sale of six operations and two projects across Australia, Ghana and North America. With agreements now finalized for all assets identified for sale, Newmont expects to generate US$3.8 billion from divestitures and an additional US$527 million from the sale of investments, including the Lundin Gold (TSX:LUG,OTCQX:LUGDF) stream credit facility and contingent payments from Batu Hijau.

The assets sold by Newmont include Telfer and its 70 percent interest in the Havieron project for up to US$475 million, the Akyem operation in Ghana for up to US$1 billion and Musselwhite in Ontario for up to US$850 million.

Aside from that, the major gold miner’s Éléonore operation in Québec was sold for US$795 million, while its Cripple Creek & Victor operation in Colorado, US, was divested for up to US$275 million.

Discovery Silver plans to continue exploration and production activities at Porcupine, which is located in Ontario’s Timmins Mining Camp. The company said the purchase aligns with its broader growth objectives.

Newmont will now focus on high-performing Tier 1 operations across its global portfolio. The company operates in jurisdictions that include Africa, Australia, Latin America, North America and Papua New Guinea.

Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.

This post appeared first on investingnews.com

You May Also Like

Investing News

Zinc was among the best-performing base metals in 2024. It experienced a 13 percent gain, rising from US$2,621 per metric ton (MT) to US$2,979...

Stock News

In this exclusive StockCharts video, Julius takes a look at asset class rotation on Relative Rotation Graphs. He then addresses the 6 sectors that...

Business News

WASHINGTON — The Biden administration will hold off enforcing a requirement laid out in an executive order this month that Nippon Steel abandon its $14.9 billion bid for U.S. Steel, the...

Stock News

In this video, Tony starts the week with a very different tone as he looks at how markets are currently playing out. He then...