Newmont Completes Sale Of Interests In KCGM 

DENVER, CO - Newmont has successfully completed the sale of its 50 percent stake in Kalgoorlie Consolidated Gold Mines (KCGM) to Northern Star Resources Limited receiving cash proceeds of $800 million. “Newmont is pleased to complete the sale of KCGM to Northern Star and hand over the asset in good order to a well-established gold producer with a commitment to safety, community development and responsible environmental practices,” said Tom Palmer, President and Chief Executive Officer. “Proceeds from the transaction will support Newmont’s disciplined approach to capital allocation, which includes strategically reinvesting in the business, strengthening the Company’s investment-grade balance sheet and returning cash to shareholders,” Palmer added.

Total proceeds from the transaction include a $25 million payment that gives Northern Star specified exploration tenements, transitional services support and an option to exclusively negotiate for the purchase of Newmont’s Kalgoorlie power business for a 120 day period. The $25 million payment will be credited against the purchase price for the power business or $22.5 million would be returned to Northern Star if the power business is sold to a third party.

Combined with the previously announced agreements to sell Red Lake in Canada for $375 million and the Company’s stake in Continental Gold for $260 million, Newmont has met its divestiture target of $1.0 to $1.5 billion, with more than $1.4 billion in cash proceeds expected to be received in the first quarter of 2020. The sale of KCGM further streamlines Newmont’s portfolio, with 12 top-tier assets located on four continents in the world’s most favorable gold mining jurisdictions.