Newmont to sell Porcupine operation in Ontario for up to $425M

Newmont (NEM) announced that it has agreed to sell its Porcupine operation in Ontario, Canada to Discovery Silver Corp. for up to $425M in total consideration. Upon closing the sale of the Porcupine operation and the previously announced transactions, Newmont will deliver up to $4.3B in total proceeds from non-core asset divestitures and investments. The transaction is expected to close in the first half of 2025, subject to certain conditions being satisfied. Under the terms of the agreement, Newmont expects to receive gross proceeds of up to $425M, which includes: cash consideration of $200M, due upon closing; equity consideration of $75M in the form of Discovery shares, to be issued upon closing; deferred cash consideration of $150M. In February 2024, Newmont announced the intent to divest its non-core assets, including six operations and two projects from its Australian, Ghanaian, and North American business units. Including today’s announcement, Newmont has divested, or has definitive agreements in place to divest, all six operations and one project classified as held for sale in its financial statements. Total gross proceeds from transactions announced in 2024 to date are expected to be up to $4.3B. This includes $3.8B from non-core divestitures and $527M from the sale of other investments, detailed as follows: up to $475M from the sale of the Telfer operation and Newmont’s 70% interest in the Havieron project; up to $1B from the sale of the Akyem operation; up to $850M from the sale of the Musselwhite operation; $795M from the sale of the Eleonore operation; up to $275M from the sale of the CC&V operation; up to $425M from the sale of the Porcupine operation and $527M from the completed sale of other investments, including the sale of the Lundin Gold stream credit facility and offtake agreement, and the monetization of Newmont’s Batu Hijau contingent payments.