Newmont Mining Corp. announced it has entered into a deal to sell a New Zealand gold mine to OceanaGold.

The Australian-based OceanaGold based in Melbourne, Victoria, will purchase Newmont's Waihi Gold Limited Mine for a total of $106 million, plus one percent Net Smelter Royalty on a recent discovery north of the mine's current operations, Bloomberg reported.

Under the deal, OceanaGold will acquire all of Waihi’s open pit and underground mining assets and liabilities, including all social, environmental and employee obligations.

Randy Engel, Newmont’s executive vice president for strategic development, said the agreement is part of Newmont's strategy to strengthen its balance sheet by selling select assets for cash.

“Waihi is a good strategic fit within OceanaGold’s existing portfolio in New Zealand, and their strong safety and sustainability standards position them well to further develop Waihi in the future," Engel said.

Waihi, first discovered in 1878 and acquired by Newmont in 2002, is located approximately 150 kilometers southeast of Auckland in New Zealand.
Newmont employs approximately 28,000 people around the world, with the majority working in the U.S.