Newmont has announced the divestment of its Musselwhite operation, bringing its divestiture program to $US2.9 billion ($4.45 billion).
Orla Mining is set to be the new owner of Musselwhite, located in Ontario, Canada, with the company paying up to $US850 million for the mine, with $US40 million of this being contingent payments based on future gold prices.
“We are pleased to be selling our Musselwhite operation to Orla and have full confidence that they will continue to operate responsibly, while maintaining strong partnerships with the mine’s workforce and local and Indigenous communities,” Newmont president and chief executive officer Tom Palmer said.
“Today’s announcement signifies Newmont’s continued progress towards building our go-forward portfolio and delivering on the transaction commitments we made at the beginning of the year.”
Newmont has announced several transactions to this point as part of its divestiture program, including up to $US1 billion going towards the sale of the Akyem operation and up to $US475 million going towards the sale of the Telfer operation and the company’s 70 per cent stake in the Havieron project.
Newmont has also announced $US527 million in other divestments, including the sale of a Lundin Gold credit facility and offtake agreement.
Greatland Gold, set to be the new owner of Telfer and Havieron, provided an update on the transaction last week.
The remediation of a Telfer tailings facility, which has been a key sticking point in the deal, has been completed by Newmont, with a required 14 days of consecutive processing achieved following this.
All conditions have been satisfied regarding this component of the deal.
The Foreign Investment Review Board has also provided its approval of the transaction, while the Pilbara Ports Authority has issued its consent regarding the transfer of crown land at Port Hedland.
With a handful of conditions still needing to be satisfied, Greatland and Newmont hope to complete the deal by early December 2024.
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