Newmont will sell its Cripple Creek and Victor (CC&V) gold operation in Colorado, US to SSR Mining for up to $US275 million ($430 million).
The transaction, expected to close in the first quarter of 2025, is the latest in a string of divestments from Newmont, which involves the US gold giant selling mines and project it doesn’t consider to be a ‘Tier 1’ asset.
Newmont defines a Tier 1 asset as an operation with “(more than) 500,000 gold equivalent ounces per year consolidated, (an) average all-in sustaining cost per ounce in the lower half of the industry cost curve, and a mine life (greater than) 10 years in countries classified in the A and B rating ranges of Moody’s, S&P and Fitch”.
Newmont expects its divestiture program to generate up to $US3.9 billion in gross proceeds, including $US3.4 billion from non-core divestitures and $US527 million from the sale of other investments:
Thus far, Newmont has sold:
Newmont is also set to receive $US527 million from the completed sale of other investments such as the Lundin Gold stream credit facility and offtake agreement and its Batu Hijau contingent payments.
“We are excited to announce the continuation of our divestment program to streamline the Newmont portfolio as the leading operator of Tier 1 gold and copper assets,” Newmont president and chief executive officer Tom Palmer said.
“We are confident that SSR has the capability to deliver the next phase of life for CC&V, the employees who work there, and local stakeholders.”
Once an updated regulator-approved closure plan is completed and if CC&V’s aggregate closure costs exceed $US500 million, Newmont will fund 90 per cent of the incremental closure costs in an updated closure plan. These will be paid either on an as-incurred basis or a net present value lump sum payment option.
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