Newmont Mining sells Nevada mine for $83 million

December 5, 2013

Newmont Mining Corp. announced that it will sell its Midas underground gold mine and mill operation in Nevada to Klondex Mines Ltd. for $83 million.

"We are pleased to have reached agreement with Klondex for the sale of Midas and believe they are well positioned to continue safely and successfully operating the mine," said Randy Engel, Newmont's executive vice president for strategic development.

"This agreement underscores our ongoing commitment to optimizing our portfolio, as we continue to focus on our longer-life and lower cost core assets," Engel said in a statement.

The purchase price consists of about $55 million in cash and the replacement of Newmont surety arrangements with Nevada and federal regulatory authorities valued at about $28 million.

In addition, Newmont will receive 5 million common share purchase warrants of Klondex that have a 15-year term.

Newmont said it anticipates closing the transaction in early 2014.

Paul Huet, president and CEO of Klondex, said the acquisition of the Midas mine and related ore-milling facility is "transformational for Klondex, during a pivotal point in our company's development."

Klondex said GMP Securities LP has been engaged by Klondex to coordinate financing of the Midas Mine acquisition.
 

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