Newmont Corporation (ASX: NEM) has announced an agreement to sell its Cripple Creek & Victor (CC&V) operation in Colorado, USA, to SSR Mining Inc. for up to US$275 million in cash consideration.
This transaction is part of Newmont’s ongoing divestiture program aimed at streamlining its portfolio of Tier 1 gold and copper assets.
The deal structure includes:
- US$100 million cash payment upon closing
- US$87.5 million deferred contingent cash consideration pending regulatory approvals
- US$87.5 million deferred contingent cash consideration upon resolution of Carlton Tunnel regulatory applications
Tom Palmer, Newmont’s President and Chief Executive Officer, stated: “We are excited to announce the continuation of our divestment program to streamline the Newmont portfolio as the leading operator of Tier 1 gold and copper assets.
“We are confident that SSR has the capability to deliver the next phase of life for CC&V, the employees who work there, and local stakeholders.”
The transaction is expected to close in the first quarter of 2025, subject to certain conditions. Newmont will retain some responsibility for closure costs if they exceed US$500 million, funding 90 per cent of incremental costs in such cases.
Newmont’s divestment initiative, announced in February 2024, aims to sell non-core assets across its Australian, Ghanaian, and North American operations.
The company has already completed the sale of its Telfer operation and 70 per cent interest in the Havieron project on December 4, 2024.
Total gross proceeds from announced transactions in 2024 are expected to reach up to US$3.9 billion, including:
- Up to US$475 million from Telfer and Havieron
- Up to US$1.0 billion from Akyem operation
- Up to US$850 million from Musselwhite operation
- US$795 million from Éléonore operation
- Up to US$275 million from CC&V operation
- US$527 million from other investment sales
BMO Capital Markets acted as financial adviser for the CC&V transaction, with Davis Graham & Stubbs LLP serving as legal adviser.
