U.S. mining company Newmont is set to sell its Akyem Gold Mine Project in Ghana to China's Zijin Mining for $1 billion.
It said in a statement that the sale is part of the company’s ongoing programme to divest non-core assets.
“The sale of Akyem represents continued progress on the non-core asset divestiture programme announced in February, supporting our focus on the Tier 1 assets in Newmont’s portfolio that will drive sustainable growth and the return of capital to shareholders,” said, Newmont president and chief executive Tom Palmer.
“We believe the proposed transaction results in the greatest overall value for Newmont shareholders and is the best strategic fit for Akyem.”
Under the terms of the agreement, Newmont is expected to receive cash consideration of $900 million upon closing.
A further $100 million is expected to be received upon the satisfaction of certain conditions.
Proceeds from the transaction will support the company’s capital allocation priorities, including strengthening the balance sheet and returning capital to shareholders.
Meanwhile, Reuters quoted Zijin as saying that certain Ghanaian entities had expressed interest in acquiring a minority stake in the asset and that it was open to exploring such potential transactions.
Mathew Nyaungwa, Editor in Chief, Rough&Polished
