Newmont sells stake in Australian gold miner for $182 million

Cecilia Jamasmie | March 11, 2016 | 3:45 am Precious Metals Australia Europe Gold

Regis’ Moolart Well gold mine is located within the Duketon Gold Project, approximately 350 kilometres north, north-east of Kalgoorlie in Western Australia. (Image courtesy of Regis Resources)

World’s number two gold producer Newmont Mining (NYSE:NEM) has taken advantage of a recent rally in the price of the metal and the increased value of Australian gold miners by selling its 19.45% stake in Regis Resources (ASX:RRL).

Newmont first moved on to the Regis’ radar early in 2006, selling its interests in the Duketon region of Western Australia in return for shares.

The $182 million-sale, part of Newmont’s ongoing efforts to reduce debt, was managed through a book build process to a broad range of institutional investors in Australia, North America and Europe, the company said.

Newmont first moved on to the Regis’ radar early in 2006, selling its interests in the Duketon region of Western Australia in return for shares. Regis now has three operating goldmines at Duketon.

Last year, Newmont completed the sale of its Waihi Gold, located about 150km southeast of Auckland in New Zealand, to OceanaGold (TSX, ASX:OGC) for $101m.

As a result, the miner lowered net debt in 2015 by 19% and continued to invest in growth by acquiring Cripple Creek & Victor in Colorado from AngloGold.