It’s been almost two months since Newmont entered talks with Greatland Gold to shed two of its non-core Western Australian assets, Havieron and Telfer.
Now, the gold giant is making the move official with the sale set to be completed tomorrow.
Greatland will walk away with a 100 per cent ownership of the Telfer copper-gold mine and Newmont’s 70 per cent stake in Havieron, of which Greatland already owns the other 30 per cent.
Greatland managing director Shaun Day said the deal will cement Greatland’s foothold in the Paterson region of WA.
“We are delighted to have scheduled completion of Greatland’s transformational acquisition of Telfer and Havieron for Wednesday December 4 2024,” Day said.
“It is a credit to the exceptional efforts of the Greatland, Newmont and Telfer teams that we have been able to move efficiently and quickly towards completion well inside our target of the December 2024 quarter.”
Under the terms of the agreement, Newmont expects to receive gross proceeds of up to $475 million, including:
- cash consideration of $207.5 million, due upon on closing
- equity consideration of $167.5 million in the form of Greatland shares, to be issued upon closing
- deferred contingent cash consideration of up to $100 million.
“Completion will mark the beginning of a new chapter for Greatland as an immediate and significant Australian gold and copper producer,” Day said.
“The combination of immediate production from the Telfer operations and our planned completion of the development of the world-class Havieron project provides an exceptional platform for continued growth.”
When the deal was first announced, Newmont president and chief executive officer Tom Palmer said it was just the first step in a larger divesture program.
“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, further reduce debt, and return capital to shareholders,” Palmer said.
The most recent execution of this plan saw Newmont agree to offload its Éléonore operation in Canada to Dhilmar for $795 million.
Total gross proceeds from transactions announced in 2024 to date are expected to be up to $3.6 billion.
This includes $3.1 billion from non-core divestitures and $527 million from the sale of other investments including:
- $475 million from the sale of the Telfer and Havieron
- $1 billion from the sale of the Akyem operation in Africa
- $850 million from the sale of the Musselwhite operation in Canada
- $795 million from the sale of the Éléonore operation
- $527 million from the completed sale of other investments, including the sale of the Lundin gold stream credit facility and offtake agreement, and the monetisation of Newmont’s Batu Hijau contingent payments.
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