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Newmont Commits to Sale of Stake in Continental Gold to Generate $260 Million in Cash Proceeds

Press Release

DENVER– Newmont (NYSE: NEM, TSX: NGT) (Newmont or the Company) today announced it has entered into a contractual arrangement to support Zijin Mining Group’s bid to acquire Continental Gold Inc. (Continental) by selling its 19.9 percent equity stake and its convertible bond for $260 million. With the announced sale of Red Lake for $375 million, the Company expects to realize $635 million in total cash proceeds when the transactions close in the first quarter 2020.

“Newmont technical teams identified the potential of the deposit and have supported Continental as it advanced Buritica toward production,” said Tom Palmer, Newmont Chief Executive Officer and President. “While we have valued our partnership with Continental, this is an appropriate time to sell into a strong bid and remain focused on operating our world-class portfolio of assets, optimizing our leading project pipeline and investing in growing Reserves and Resources.”

Newmont intends to use proceeds from the transaction to support the Company’s priorities to return capital to shareholders, invest in profitable projects and strengthen the balance sheet.

The proposed transaction involves Newmont tendering its 19.9 percent equity stake and selling its convertible bond, thereby exiting from its shareholding in and financing arrangements with Continental. The transaction, which is expected to close in the first quarter 2020, is subject to Continental shareholder approval and certain closing conditions.

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 proficiency. Newmont was founded in 1921 and has been publicly traded since 1925.

View source version on businesswire.com: https://www.businesswire.com/news/home/20191202005545/en/

Media Contact
Omar Jabara 303.837.5114 [email protected]

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Jessica Largent 303.837.5484 [email protected]

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