Completion Of Red Lake Complex Sale To Evolution Mining
DENVER, CO - Newmont Corporation reported that it successfully completed the sale of its Red Lake complex in Ontario, Canada to Evolution Mining Limited. “We are pleased to complete the sale of Red Lake to a highly respected and responsible operator in Evolution. The transaction provides us ongoing exposure to future exploration upside, whilst we remain focused on our diverse global portfolio of 12 managed operations and two joint ventures, which includes eight world-class assets,” said Tom Palmer, President and Chief Executive Officer.
Under terms of the $100 million contingent payment, Evolution will pay Newmont $20 million for each one million ounces of new gold resources added to the existing Red Lake resource base over a fifteen year period. The contingent payment is applicable to the first five million ounces of new resources.
“Combined with the sale of our interests in Continental and KCGM, we have generated more than $1.4 billion in total cash proceeds, meeting our divestiture target of $1.0 to $1.5 billion in less than a year. These asset sales will support the continuation of our capital allocation priorities, which include strengthening our investment grade balance sheet, investing in our highest returning projects, and returning excess cash to our shareholders,” Palmer said.