Newmont Signs Agreement to Sell Stake in Penmont Joint Venture in Mexico

09/12/2014

Transaction continues to strengthen Newmont's financial flexibility

DENVER -- (BUSINESS WIRE) -- Newmont Mining Corporation (NYSE: NEM) (“Newmont” or “the Company”) announced it has entered into a binding purchase and sale agreement with Fresnillo plc (“Fresnillo”) to divest its 44 percent stake in the Penmont joint venture (“Penmont”) in Mexico for a gross transaction value of approximately US$477 million, including cash proceeds of US$450 million at closing. Fresnillo is acquiring all assets and liabilities, including all employee and future environmental obligations.

“We are pleased to announce our agreement with Fresnillo, which further strengthens Newmont's financial flexibility while allowing our partner to consolidate their position in the Herradura Corridor,” said Randy Engel , Newmont’s Executive Vice President for Strategic Development. “Since last year, Newmont has generated $1.3 billion from the sale of non-core assets at fair value, thereby significantly improving our financial flexibility and better positioning us to fund the next generation of the Company’s profitable operations, such as Merian in Suriname.”

The sale is expected to close in early October and is subject to Fresnillo shareholder approval. Newmont owns a 44 percent interest in the Penmont joint venture and related gold properties (La Herradura, Soledad-Dipolos and Noche Buena), which are located in the Sonora region of Mexico. Penmont is operated by Fresnillo through Minera Penmont S. de R.L. de C.V. (“Minera Penmont”) and Fresnillo owns the remaining 56 percent interest. At December 31, 2013, Newmont recognized net book value of the Penmont joint venture totaling approximately $365 million.

La Herradura has been in operation since 1998. Soledad-Dipolos is located nine kilometers northwest of La Herradura and commenced operations in January 2010. Noche Buena is located 23 kilometers northwest of La Herradura and operations commenced in the first quarter of 2012. Penmont produced approximately 183,000 attributable ounces of gold in 2013, and at December 31, 2013 Newmont reported 2.2 million attributable ounces of gold reserves.

About Newmont

Founded in 1921 and publicly traded since 1925, Newmont is a leading producer of gold and copper. Headquartered in Colorado, the Company has approximately 30,000 employees and contractors, with the majority working at managed operations in the United States, Australia, New Zealand, Peru, Indonesia and Ghana. Newmont is the only gold company listed in the S&P 500 index and in 2007 became the first gold company selected to be part of the Dow Jones Sustainability World Index. Newmont is an industry leader in value creation, supported by its leading technical, environmental, and health and safety performance.

Cautionary Statement

This release contains “forward-looking statements” within the meaning of applicable securities laws that are intended to be covered by the safe harbors created by those laws, including statements that use forward-looking terminology such as “may”, “will”, “expect”, “anticipate”, “believe”, “continue”, “potential” or the negative thereof or other variations thereof or comparable terminology. Such forward-looking statements may include, without limitation, statements regarding the completion of the proposed transaction and other statements that are not historical facts. While such forward-looking statements are expressed by Newmont as stated in this release in good faith and believed by Newmont to have a reasonable basis, they are subject to important risks and uncertainties including, without limitation, gold, silver and other metals price volatility, approval of applicable governmental or regulatory authorities, the receipt of all required third party approvals, the satisfaction or waiver of certain other conditions contemplated by the agreement, the inability to realize expected synergies or cost savings, estimates of reserves or future production, increases in production costs, including due to parts, equipment, labor or power shortages, variances in ore grade or recovery rate, mining accidents or other adverse events, changes in applicable laws or regulations, community relations, competition from other mining companies, and the other risks disclosed in Newmont’s public filings, any or all of which could cause actual results to differ materially from future results expressed, projected or implied by the forward-looking statements. As a result of these risks and uncertainties, the proposed transaction could be modified, restructured or not be completed, and the results or events predicted in these forward-looking statements may differ materially from actual results or events. These forward-looking statements are not guarantees of future performance, given that they involve risks and uncertainties. Newmont does not undertake any obligation to release publicly revisions to any forward-looking statement or to comment on expectations of, or statements made by Fresnillo or other third parties in respect of the proposed transaction, except as may be required under applicable securities laws. Investors should not assume that any lack of update to a previously issued forward-looking statement constitutes a reaffirmation of that statement. Continued reliance on forward-looking statements is at investors' own risk.

Source: Newmont Mining Corporation

Newmont Mining Corporation

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