Glencore to Acquire Newmont’s Stake In MARA Project
23 September 2022 - 1:30PM
Business Wire
Today, Glencore International AG (GIAG) and Newmont Corporation
(NYSE: NEM, TSX: NGT) announced they have reached an agreement in
which Glencore will acquire Newmont’s 18.75% shareholding in the
MARA Project (MARA). Following completion of the transaction,
Glencore will own 43.75% of MARA.
Under the terms of the agreement, Glencore will pay $124.9
million upon closing and a $30 million deferred payment upon
commercial production subject to an annual interest charge of 6%.
Total deferred consideration is capped at $50 million.
The closing of the transaction is subject to customary
conditions and regulatory filings.
The MARA Project, located in the Catamarca province of
Argentina, is a joint venture formed in December 2020 between
Yamana Gold, Glencore and Newmont following the integration of the
Minera Alumbrera plant and mining infrastructure and Agua Rica
project. Under the new structure, Yamana Gold Inc. will remain the
operator with 56.25% of MARA, with Glencore owning the remaining
shares.
A core asset for Yamana and Glencore, MARA has proven and
probable mineral reserves of 5.4 million tonnes of copper and 7.4
million ounces of gold contained in 1.105 billion tonnes of ore
with an initial mine life of 28 years.
About Newmont
Newmont is the world’s leading gold company and a producer of
copper, silver, zinc and lead. The Company’s world-class portfolio
of assets, prospects and talent is anchored in favorable mining
jurisdictions in North America, South America, Australia and
Africa. Newmont is the only gold producer listed in the S&P 500
Index and is widely recognized for its principled environmental,
social and governance practices. The Company is an industry leader
in value creation, supported by robust safety standards, superior
execution and technical expertise. Newmont was founded in 1921 and
has been publicly traded since 1925.
At Newmont, our purpose is to create value and improve lives
through sustainable and responsible mining. To learn more about
Newmont’s sustainability strategy and initiatives, go to
www.newmont.com.
Cautionary Statement:
This release may contain “forward-looking statements” within the
meaning of the Private Securities Litigation Reform Act of 1995 and
other securities laws, including, but not limited to, statements of
expectations of closing of the sale of Newmont’s MARA interest,
expectations regarding receipt of deferred consideration, and
expectations regarding future mining and commercial production of
the project. Forward-looking statements may be accompanied by
terminology such as “will” or comparable terminology.
Forward-looking statements provide the Company’s current
expectations about future events, but these statements are not
guarantees and involve certain risks, uncertainties and
assumptions. The closing of the transaction remains subject to
satisfaction of customary conditions and completion of regulatory
filings. The Company does not undertake any obligation to release
publicly revisions to any “forward-looking statement”, to reflect
circumstances after the date of this news release, or to reflect
the occurrence of unanticipated events, except as may be required
under applicable securities laws.
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version on businesswire.com: https://www.businesswire.com/news/home/20220922005951/en/
Media Contact Courtney Boone
303.837.5159 courtney.boone@newmont.com
Investor Contact Daniel Horton
303.837.5468 daniel.horton@newmont.com
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