Newmont Sells Stake in Continental Gold for $260 Million in Cash

SEATTLE (Scrap Monster): Newmont Mining announced that it has successfully completed sale of its 19.9% equity stake and convertible bonds in Continental Gold for $260 million in cash. The sale is considered to be in line with a contractual agreement to support Continental’s acquisition by Chinese Zijin Mining Group.

Tom Palmer, President and Chief Executive Officer noted that the cash proceeds from the stake sale will support the company’s capital allocation process. The proceeds will be used to strengthen its investment grade balance sheet. Also, the company plans to invest in high-returning projects and return excess cash to its shareholders. Newmont has generated more than $1.4 billion through sale of assets since April 2019, Palmer said.

In related news, Newmont declared that the company is interested in participating in the upcoming bidding for gold in Egypt. This was revealed during a recent meeting between Nicholas Cotts, Vice President of the Sustainability and External Relations at Newmont Mining Corporation and Tarek El-Molla , Minister of Petroleum, Egypt.

Meantime, the company announced the pricing of its public offering of $1 billion aggregate principal amount of 2.250% senior notes due 2030. The offering is expected to close on March 18, 2020.

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