"Newmont Goldcorp Corporation NEM entered an agreement to sell the Red Lake Complex in Ontario, Canada, to Evolution Mining Limited gold producer based in Australia. Newmont Goldcorp expects to receive $375 million in cash and contingent payments of up to $100 million on completion of the deal.The transaction, which is anticipated to close in the first quarter of 2020, strengthens the company’s balance sheet, streamlines its assets base and provides continued exposure to resource discoveries at Red Lake.Evolution Mining will pay Newmont Goldcorp $20 million for each 1 million ounces of new gold resources added to the Red Lake resource base over 15 years, under the terms of the $100-million contingent payment. The contingent payment is applicable for the first 5 million ounces of new resources.Newmont Goldcorp plans to use the proceeds from the transaction to aid its capital allocation priorities of returning cash to shareholders, investing in word-class portfolio and maintaining an investment-grade balance sheet."
..more cash for Namdini....
CDV Price at posting:
28.5¢ Sentiment: Buy Disclosure: Held
