News Contact Us

Northern Star to procure Newmont’s interests in KCGM for $800 million

Author : Pankaj Singh | Published Date : 2019-12-17 

The US-based mining company Newmont Goldcorp recently entered an agreement to sell its 50% stake in KCGM (Kalgoorlie Consolidated Gold Mines) to Northern Star Resources Ltd., a leading resource company based in Australia.

As a part of the agreement, Newmont Goldcorp will receive an amount of $800 million in cash for its interests in Kalgoorlie Consolidated Gold Mines, which is inclusive of a $25 million payment that gives Northern Star Resources transitional services support, specified exploration tenements, as well as an option to negotiate exclusively for 120 days after the purchase of Newmont’s KCGM power business for fair market value.  If the power business is sold to a third party, the payment of $25 million will be credited against the purchase price for the power business or will be returned to Northern Star.

Following the receipt of ministerial consent required under Kalgoorlie’s crown leases, the transaction is expected to close in the first quarter of 2020.

Tom Palmer, President & CEO OF Newmont Goldcorp was reportedly quoted saying that the recent transaction has generated exceptional value and further strengthened Newmont’s financial position by increasing proceeds from the firm’s 2019 asset sale agreements to more than $1.4 billion. For Newmont, Australia remains a core operating region, and the sale of KCGM will allow the company to focus on investing in profitable growth as well as in creation of top-tier Boddington and Tanami complexes across the region.

Palmer added saying that Northern Star is a renowned gold producer in Australia with a core competency in exploration, responsible environmental stewardship, commitment to community development, and safety.

As per sources close to the matter, the sale of Kalgoorlie Consolidated Gold Mines will streamline Newmont’s portfolio, with twelve top-tier assets situated in 4 continents in the world’s most favorable gold mining territories.

Source Credits: https://www.streetinsider.com/Corporate+News/Newmont+Goldcorp+%28NEM%29+to+Sell+Its+Interests+in+KCGM+to+Northern+Star+for+%24800+million/16248905.html

About Author

Pankaj Singh

Pankaj Singh

Endowed with a post graduate degree in management and finance, Pankaj Singh has been a part of the online content domain for quite a while. Having worked previously as a U.K. insurance underwriter for two years, he now writes articles for fractovia.org and other online portals. He can be contacted at- [email protected] | https://twitter.com/PankajSingh2605

Related News

Houston-based McDermott International to soon file for bankruptcy

Published Date: 2020-01-22         Author: Pankaj Singh

Oilfield service company, McDermott International has recently confirmed plans to file for Chapter 11 bankruptcy. Sources close to the matter cite that McDermott would file a prepackaged restructuring plan at the United States Bankruptcy Court in Houston. The restructuring plan, which has the bac... Read More

U Mobile set to invest billions of ringgits in 5G network spectrum

Published Date: 2020-01-20         Author: Pankaj Singh

U Mobile Sdn Bhd, a telecommunication service provider based in Malaysia, has plans to invest a large sum of money/ringgits in 5G network development for next generation connectivity. The company has already spent RM300 million for future rollouts, which is anticipated to complete in the Q3 of 2020,... Read More

Datadog launches partner program to support channel partners in ANZ

Published Date: 2020-01-18         Author: Pankaj Singh

Datadog, the global monitoring and cloud-scale analytics platform for developers, IT teams, and business users, recently announced the launch of a new partner program, expanding its support for channel partners in Australia & New Zealand. The Datadog Partner Network will offer a structured platf... Read More

© 2020 Fractovia. All Rights Reserved