Newmont Mining to Sell Nevada Facility

Newmont Mining to Sell Nevada Facility

Newmont Mining is soon to be one asset lighter. It has signed an agreement to sell its Midas facility in Nevada to Canada-based Klondex Mines, both companies announced in separate press releases. The base price is $83 million.

Midas is an underground mine and mill complex located in the north central part of the state between the municipalities of Reno and Elko. Newmont acquired the facility through its takeover of Australia's Normandy Mining in 2002.

In addition to the $83 million sale price, Newmont is to receive 5 million warrants for Klondex common shares. These have a 15-year term, with an exercise price to be determined on the closing date.

The two companies expect the Midas deal, which is subject to approval from the relevant regulators, to close early next year.

Described by Newmont as a move at optimizing its portfolio, the sale should play a small part in helping to shore up the company's finances. At the end of September, it had under $1.5 billion in cash and equivalents, but nearly $6 billion in long-term debt.

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