US-based gold mining company Newmont has entered an agreement to sell its Telfer mine in Western Australia (WA), along with a 70% stake in the nearby Havieron gold-copper project and other related assets, to Greatland Gold for a maximum consideration of $475m.
This sum includes a cash payment of $207.5m due upon the deal’s closure and an equity consideration valued at $167.5m, consisting of Greatland Gold shares to be issued at the same time.
Additionally, the agreement stipulates a deferred contingent cash consideration of up to $100m.
This transaction is part of Newmont’s strategic initiative to offload non-core assets.
Due to complete in Q4 2024, it is contingent on the fulfilment of certain conditions such as clearance from the Foreign Investment Review Board and receipt of environmental licences.
For this deal, Macquarie Capital offered financial advice to Newmont, while Allens and Linklaters served as its legal advisers.
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By GlobalData
Newmont president and CEO Tom Palmer said: “The transaction announced today represents the first asset sale in the divestiture programme announced in February.
“I am pleased that Telfer and Havieron are being sold to Greatland, a company with a highly experienced management team and board of directors. I have full confidence that the Greatland team will be outstanding stewards of these assets.
“Including the Telfer divestiture, we continue to expect to reach at least $2bn in total proceeds from the sale of our high-quality, non-core assets, enabling us to focus attention on our suite of Tier 1 assets, further reduce debt and return capital to shareholders.”
Telfer formed part of Newcrest’s portfolio when it was taken over by Newmont in a A$26.2bn ($17.45bn) deal last year.
It is a fly-in fly-out gold, copper and silver mine located in the Great Sandy Desert in the Pilbara region of Western Australia.
In Q2 2024, Newmont registered attributable net income of $853m, up from $155m in the same quarter a year ago.
