Newmont Mining agrees to sell Waihi gold mine in New Zealand

Colorado-based Newmont Mining Corporation has signed a non-binding letter of intent to sell its Waihi gold mining operation in New Zealand to Oceana Gold Corporation for $101 million. Terms of the sale also include a $5 million contingent payment as well as a one percent net smelter royalty on a recent discovery north of Waihi’s current operation.

“Our agreement with OceanaGold for the sale of Waihi represents another step in Newmont’s strategy to further strengthen our balance sheet by selling select assets for cash at fair value,” said Randy Engel, Newmont’s Executive Vice President for Strategic Development.

“Waihi is a good strategic fit within OceanaGold’s existing portfolio in New Zealand, and their strong safety and sustainability standards position them well to further develop Waihi in the future.”

Under the deal, Oceana Gold will acquire all of Waihi’s open pit and underground mining assets and liabilities, including social, environmental and employee obligations.

"The investment in Waihi really is an investment in what we see as a high-quality, low-cost, long-life asset," OceanaGold Chief Executive Mick Wilkes said Thursday.

First discovered in 1878, the Waihi gold project is located roughly 94 miles (150 km) southeast of Auckland in New Zealand. Newmont acquired the mine in 2002.

The deal is subject to board, regulatory and other approval. 

Read the full press release here.