Newmont Mining has expanded its portfolio, acquiring a large stake in one of the largest undeveloped copper gold projects in Canada.
In a statement released this week Newmont has revealed that it has acquired a 50% interest in the Galore Creep Partnership from Novagold Resources. Through the interest, Newmont will form a partnership with Teck Resources, who owns the remaining 50% stake.
Teck had previously reported the project to have a resource of eight million ounces of gold and nine billion pounds of copper.
The NOVAGOLD agreement encompasses a staged and contingent investment of $275 million, with an initial payment of $100 million; a payment of $75 million on the earlier of prefeasibility study completion or three years from closing; and a payment of $25 million on the earlier of completing a feasibility study or five years from closing. A final $75 million payment would be contingent on a final decision to develop the project.
“Galore Creek holds the potential to support decades of profitable copper and gold production in a favorable mining jurisdiction, in line with our strategy to create long-term value for our stakeholders,” said Gary Goldberg, President and Chief Executive Officer. “Partnering with Teck allows us to bring both organizations’ considerable technical, financial and sustainability strengths to bear in evaluating and refining development plans for Galore Creek, and to build on the strong relationships Teck has established with the Tahltan First Nation and British Columbia.”
As part of the transaction, Newmont will also acquire the Company’s 40% interest in the adjacent Copper Canyon mineral property (the “Copper Canyon property”).