Newmont Acquires Interest in Galore Creek Copper/Gold from Novagold.
M2 EQUITYBITES-July 27, 2018-Newmont Acquires Interest in Galore Creek Copper/Gold from Novagold
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27 July 2018 - Colorado, US-based gold and copper producer Newmont Mining Corp. (NYSE: NEM) has agreed to acquire a 50% interest in the undeveloped copper/gold project of Canada-based Galore Creek Partnership from Novagold Resources Inc., the company said.
Newmont will form a partnership with Teck Resources Ltd., owner of Galore Creek's remaining stake, the company said.
The Novagold agreement encompasses a staged and contingent investment of USD 275m, with an initial payment of USD 100m; a payment of USD 75m on the earlier of prefeasibility study completion or three years from closing; and a payment of USD 25m on the earlier of completing a feasibility study or five years from closing.
A final USD 75m payment would be contingent on a final decision to develop the project.
Newmont said Galore Creek holds the potential to support decades of profitable copper and gold production in a favorable mining jurisdiction.
Partnering with Teck allows the company to bring both organisations' considerable technical, financial and sustainability strengths to bear in evaluating and refining development plans for Galore Creek, and to build on the strong relationships Teck has established with the Tahltan First Nation and British Columbia.
Newmont's operations are primarily in the United States, Australia, Ghana, Peru and Suriname.
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|Publication:||M2 EquityBites (EQB)|
|Date:||Jul 27, 2018|
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