Newmont Corporation (ASX:NEM) is selling the Telfer Operation and its 70% interest in the Havieron Gold-Copper Project in Western Australia to Greatland Gold (AIM:GGP).
The transaction, which also includes other related interests in the Paterson region, is expected to close in the fourth quarter of this year and comes as part of an ongoing program by Newmont to divest non-core assets.
Under the agreement, Newmont, which has a market capitalisation of $86.19 billion, is expected to receive up to $475 million.
Greatland Gold will pay a cash consideration of $207.5 million to Newmont, which is due upon closing the transaction. Greatland Gold will also issue $167.5 million worth of shares, and a deferred contingent cash consideration of up to $100 million.
Newmont picked up the Telfer and Havieron assets via its takeover of Newcrest Mining, which was finalised in November 2023.
CEO Tom Palmer says the transaction represents the first asset sale in the program, which was announced in February 2024.
“I have full confidence that the Greatland team will be outstanding stewards of these assets,” Palmer says.
“Including the Telfer divestiture, we continue to expect to reach at least $2 billion in total proceeds from the sale of our high-quality, non-core assets, enabling us to focus attention on our suite of tier one assets.”
Telfer is a fly-in-fly-out mine in the Great Sandy Desert of the Pilbara in Western Australia. It includes the West Dome open pits and underground mines, producing copper and gold.
Meanwhile, the Havieron Project is prospective for copper-gold and lies in the Paterson Province of Western Australia.
Newmont is a gold-focused producer that holds a portfolio of assets, prospects, and talent in favourable mining jurisdictions in Africa, Australia, Latin America, the Caribbean, North America, and Papua New Guinea. The company’s assets are also considered prospective for copper, silver, zinc, and lead.
Write to Aaliyah Rogan at Mining.com.au
Images: Newmont Corporation
