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

Published: 03:32 27 Jun 2009 AEST

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(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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