Newmont Corp. To Acquire Boleadora Project in Argentina

SEATTLE (Scrap Monster): Newmont Corporation announced that it has entered into an agreement with Magna Terra Minerals, Inc. to acquire the Boleadora project in Santa Cruz province, Argentina. The agreement to this effect was signed between Atala Resources S.A.-Magna’s 100% owned Argentine subsidiary and Oroplata S.A.-Newmont’s subsidiary in the country.

As per the agreement, Newmont will pay $1 million in total to Magna. This comprises of an upfront payment of $25,000, followed by six instalments totalling the balance $975,000 payable within six years from the date of the agreement. Also, Newmont has granted a 2% net smelter return royalty to Magna. The royalty can be reduced upon payment of $2.5 million to Magna at any time. The gross royalty payable is being capped at $20 million, the company press release said.

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Lew Lawrick, president and CEO, Magna Terra commented that the package’s strategic location will benefit Newmont. Furthermore, the company’s proven exploration technologies will add significant value to the project. Incidentally, the acquired project is located around 17 kilometres south-east of Newmont’s Cerro Negro mine. Newmont intends to advance the project in the near term, he added.