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Market:	ASX TSX NYSE
Sector:	Gold Mining
EPIC:	NMC

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Newmont Mining

Employing approximately 34,000 employees and contractors worldwide, Newmont operates core assets in North America, South America, Australia, Indonesia, and Ghana, with new mine projects currently being developed.

Newmont Mining acquires AngloGold Ashanti's stake in Boddington Gold Project

Friday, June 26, 2009 by Ross Louthean, Mineweb.net

The enormous Boddington gold project in Western Australia has spent several years in blueprint, and its progress has been retarded by having three owners - Newmont, AngloGold Ashanti and Australia's Newcrest Mining.

Newcrest was the first to throw in the towel, and now AngloGold has officially departed after the indirect sale of its 33.3% stake. The transaction consists of three components; $US750 million cash, $US240M payable in cash or Newmont scrip, plus a royalty capped at $US100m of the average realized operating margin, exceeding $US600/ounce.

The transaction follows approvals from the Australian Foreign Investment Board, Western Australia Ministry of Mines and South Africa's reserve bank. Newmont will incur closing costs of about $US60m mainly made up of stamp duty to the WA Government.

Newmont's chief executive Richard O'Brien said the valuation date for the transaction was January 1 this year.

Boddington is the closest gold mine to the state capital of Perth - it is 130 kilometres to the south east, and at the end of May the project, which has cost up to $US2.9 billion, was 96% complete.

Boddington will become Australia's largest gold mine upon commissioning, with an anticipated annual production of about 1 million ounces.

The anticipated life was 20 years and Newmont said there was significant exploration potential, as shown by drilling in 2008 that lifted the reserve from 16.6 M oz to 20.1 M oz.

Intierra's Minmet data base showed that Boddington had proven probable reserves of 793.6 million tonnes grading 0.79 grams/tonne gold and 0.11% copper and a measured to inferred 918.9 Mt @ 0.526 g/t gold and 0.087% copper.

Intierra said the contained proven and probable gold was 20.157 M oz gold and 873,000 tonnes copper.

Mineweb is a web-based international mining publication focusing on mining financial and corporate news and comment.

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