Newmont Corporation has announced that it will sell its Akyem operation in Ghana to Zijin Mining Group Co., Ltd. under a definitive agreement, for cash consideration of up to $1 billion.

The sale is part of Newmont’s ongoing programme to divest non-core assets as the company makes a strategic shift to focus on its Tier 1 assets.

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.

Newmont said in a statement that proceeds from the transaction will support its capital allocation priorities, including strengthening the balance sheet and returning capital to shareholders.

“The sale of Akyem represents continued progress on the non-core asset divestiture program 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 Tom Palmer, Newmont’s President and Chief Executive Officer. 

“We believe the proposed transaction results in the greatest overall value for Newmont shareholders and is the best strategic fit for Akyem. We are confident that Akyem will continue to thrive under new ownership with long-term benefits for local stakeholders and surrounding communities. The successful completion of this transaction will strengthen our confidence in Ghana as a favourable mining jurisdiction and Newmont will continue to support the growth and development of the region including our development of Ahafo North.” 

“In line with President Akufo-Addo's address in February we ensured that our robust divestment process provided equal opportunity for all potential buyers, Ghanaian and international, to participate,” said Rahman Amoadu, Newmont Managing Director, Africa. 

“Additionally, we have included the Minerals Income Investment Fund (MIIF) in the process in preparation for their potential investment in Akyem to further Ghanaian interest in the mine.”

The transaction is expected to close in the fourth quarter of 2024, contingent on the satisfaction of customary conditions precedent, including regulatory approvals. As a result, the transaction is not expected to have a material impact on Newmont’s 2024 outlook and the Company has not adjusted its non-core guidance for the year.

Newmont said it remains committed to Ghana including the investment of $950 million to $1,050 million of development capital in the Ahafo North gold mining project in the Ahafo region of Ghana.

Advisers and Counsel

In connection with the transaction, Citi acted as Newmont’s exclusive financial adviser, Treadstone Resource Partners acted as strategic adviser, and Davis Graham & Stubbs LLP and Reindorf Chambers acted as legal advisers.