SoFi CEO enters prepaid forward contract on 1.5 million shares
NEW YORK - Newmont Corporation (NYSE: NEM), a leading gold mining company, has agreed to sell its Porcupine mine in Ontario, Canada, to Discovery (NASDAQ:WBD) Silver Corp. for a deal that could reach $425 million. This transaction marks the final sale in Newmont's strategy to offload non-core assets, with a focus on optimizing its portfolio towards Tier 1 operations.
The sale is structured to include $200 million in cash upon closing, $75 million in Discovery Silver shares, and a deferred cash payment of $150 million. The agreement is anticipated to conclude in the first half of 2025, pending the fulfillment of specific conditions.
Tom Palmer, President and CEO of Newmont, stated that this divestiture is a significant step in the company's ongoing efforts to concentrate on its most profitable assets. He expressed confidence in Discovery's ability to manage the Porcupine operation responsibly, given their substantial regional experience.
Since announcing its divestiture program in February 2024, Newmont has successfully negotiated the sale of all six operations and one project listed as held for sale in its financial statements. The company's divestiture efforts and other investment sales have generated expected gross proceeds of up to $4.3 billion to date, which includes $3.8 billion from the divestment of non-core operations and $527 million from the sale of other investments.
The proceeds from these transactions are intended to help Newmont reduce debt and return capital to shareholders. The completed sales and agreements encompass several operations and projects, including the Telfer operation, the Havieron project, the Akyem and Musselwhite operations, the Éléonore operation, the CC&V operation, and the Porcupine operation, in addition to other investment sales.
BMO Capital Markets served as the financial adviser, and Goodmans LLP acted as the legal adviser for the Porcupine transaction. The information for this report is based on a press release statement from Newmont Corporation.
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