Newmont To Buy Cripple Creek & Victor Mine From AngloGold For $820 Mln.

(RTTNews) - Newmont Mining Corp (NEM) on Monday said it has agreed to acquire the Cripple Creek & Victor ("CC&V") gold mine in Colorado from AngloGold Ashanti Ltd (AU).

Newmont will purchase the producing operation for $820 million in cash at closing (subject to customary adjustments), plus a 2.5 percent net smelter return royalty for gold production from potential future underground ore.

The deal will be funded with net proceeds generated from a common equity issuance of 29 million shares, and supplemented with cash from Newmont's balance sheet.

Acquiring CC&V will support Newmont's strategy to lead the gold sector in value creation by offering strong earnings and cash flow with additional opportunities to improve value; adding between 350,000 and 400,000 ounces of gold per year in 2016 and 2017 at all-in sustaining costs of between $825 and $875 per ounce; and strengthening the reserve base.

The transaction is expected to close in the third quarter of 2015, subject to regulatory approvals and the satisfaction of other conditions precedent.