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Newmont agrees to sell New Zealand mine to OceanaGold

29th April 2015

By: Henry Lazenby

Creamer Media Deputy Editor: North America

  

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TORONTO (miningweekly.com) – US gold miner Newmont Mining has provisionally agreed to sell its Waihi gold mine on New Zealand’s north island to triple-listed OceanaGold for $106-million in cash.

Under the terms of the nonbinding letter of intent, the price would include a $5-million contingency payment and a 1% net smelter royalty on a recent discovery north of Waihi’s current operations.

OceanaGold would acquire all the mine's openpit and underground mining assets and liabilities, including all social, environmental and employee obligations.

The transaction was subject to the completion of due diligence and definitive documentation, as well as obtaining board and regulatory approvals.

Major gold miners had in recent years been selling noncore assets in the wake of falling metals prices to shore up their balance sheets and focus on improving efficiencies at their core operations.

Waihi was located about 150 km south-east of Auckland. Gold was first discovered and mined in the area in 1878. The Martha openpit mine began operations in 1987 and was acquired by Newmont in 2002 during its merger with Normandy Mining, which gave rise to Newmont Asia Pacific.

Waihi produced about 132 000 oz of gold in 2014.

Edited by Tracy Klückow
Creamer Media Contributing Editor

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