Great Bear PEA suggests multi-decade Kinross gold mine in Ontario
A combined open-pit and underground mine could produce an average of 518,000 oz. gold a year over the first eight years.
As part of its efforts to offload non-core assets, Newmont (NYSE: NEM, TSX: NGT, ASX: NEM, PNGX: NEM) has agreed to sell its Telfer mine, 70% stake in the Havieron project, plus other related interests in Australia’s Paterson region, to Greatland Gold (AIM: GGP).
In exchange, the world’s leading gold miner expects to receive $207.5 million in cash, $167.5 million in Greatland shares, and a deferred cash payment of $100 million linked to gold prices and production from Havieron. The deal is expected to close in the fourth quarter of this year.
The transaction, valued at $475 million, represents the first asset sale in Newmont’s divestiture program announced in February. Other assets named in this program include the Éléonore, Musselwhite, Porcupine, CC&V and Akyem mines.
“I am pleased that Telfer and Havieron are being sold to Greatland, a company with a highly experienced management team and board of directors. I have full confidence that the Greatland team will be outstanding stewards of these assets,” said Tom Palmer, Newmont’s chief executive officer.
Earlier this year, Greatland stated that it was “in a strong position” to consolidate ownership of the Havieron gold-copper project, which the Australian junior first discovered in 2018 and has been working on since. Once built, the mine would rely on existing infrastructure from the Telfer mine.
Following the sale of Telfer, Newmont has made a minor adjustment to its gold and copper production guidance from its non-core asset base, now totalling 1.12 million oz. gold and 1,000 tonnes of copper. Production guidance from Tier 1 assets remains unchanged.
“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 1 assets,” Palmer added.
One asset that has been drawing plenty of interest is the Akyem mine in Ghana, which is said to be targeted by top Chinese miners Shandong Gold and Zijin Mining. It is also expecting a bid from Asanta Gold, which is already has operations in the African nation.
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