Newmont Completes Sale of Red Lake and Realizes Cash Proceeds of $375 million
DENVER: Newmont Corporation announced it successfully completed the sale of its Red Lake complex in Ontario, Canada to Evolution Mining Limited 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.