Newmont Mining Corporation
) has signed a Letter of Intent to divest its Midas operation in
Nevada to Waterton Global Resource Management, Inc.
The proposed deal is subject to necessary regulatory and third
party approvals along with execution and delivery of an
acquisition agreement and completion of confirmatory due
Both companies has unanimously agreed to terminate the Letter
of Intent on Oct 14, 2013, if it is not extended by a mutual
agreement of the parties, or earlier superseded by the
acquisition agreement. Also, no assurance was provided about the
completion of this transaction.
Newmont is considering selling its underground Midas mine so
that it can focus more on its core businesses by disposing its
non-core assets. In this process, Newmont is working consistently
in line with its strategy to deliver value to the
Newmont's Midas underground mine operates through roughly 200
employees and is located in north central Nevada, between Elko
and Reno. The company acquired the mine through its merger with
Normandy in 2002.
The Midas operation consists of an underground mine, waste
rock area, crushing plant, conventional mill, refinery, cyanide
destruction circuit, tailings impoundment, and two settling
ponds. The mine also provides ancillary facilities like a
maintenance shop, warehouse complex, administration and security
building, and facilities for distributing diesel fuel, gasoline,
Waterton is a premier mining-focused private equity investment
firm. Its significant sector knowledge and proactive approach to
asset management have led it to enter into long-term partnerships
with companies who have proven world-class potential and enduring
Waterton holds a strong track record of structuring and
managing investments in the precious metals sector. Formerly,
Waterton's internal project evaluations group assisted
Barrick Gold Corp.
) in evaluating and inspecting its all asset acquisitions.
Newmont currently holds a Zacks Rank #3 (Hold).
Other companies in the mining industry with favorable Zacks
Gold Fields Ltd.
Denison Mines Corp.
). Both retain a Zacks Rank #2 (Buy).
BARRICK GOLD CP (ABX): Free Stock Analysis
DENISON MINES (DNN): Free Stock Analysis
GOLD FIELDS-ADR (GFI): Free Stock Analysis
NEWMONT MINING (NEM): Free Stock Analysis
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