Newmont to buy AngloGold's Colorado mine for US$820m

Toronto

NEWMONT Mining Corp, the largest US gold producer, agreed to buy the Cripple Creek & Victor mine in Colorado from AngloGold Ashanti for US$820 million. Newmont will also pay a 2.5 per cent royalty for gold production from potential future underground ore, it said. Newmont will issue 29 million shares to help pay for the mine.

The deal "represents a value-accretive opportunity for Newmont to improve mine life and costs in a favourable jurisdiction", chief executive Gary Goldberg said. "Consistent with what we've achieved elsewhere, we believe we can lower direct mining costs by up to 10 per cent."