Newmont Corp. signed an agreement with Compañía de Minas Buenaventura to purchase the Yanacocha gold mine, located in the Peruvian province of Cajamarca. Newmont will acquire Buenaventura’s 43.65% interest in the mine. Yanacocha is currently the largest gold mine in Peru.

Newmont will buy Buenaventura’s interest for $300 million plus contingent payments of up to $100 million, in part tied to higher metal prices. Concurrently, Newmont will transfer its ownership interest in the La Zanja joint venture to Buenaventura in exchange for royalties on any future production from the La Zanja operation. Newmont will also contribute $45 million to Buenaventura to cover future closure costs at La Zanja.

Newmont may also have an opportunity to fully consolidate ownership of Yanacocha, as Sumitomo is assessing whether to exercise a right in its 2018 purchase agreement to return its 5% interest to Yanacocha in exchange for the original purchase price.

This acquisition will give Newmont control of the Yanacocha district.

“Newmont has successfully operated in Peru for more than 30 years and has deep knowledge of the asset and the value it brings to Newmont stakeholders. Buenaventura has been an exceptional partner and we look forward to continuing a strong relationship,” said Newmont President and CEO Tom Palmer.

Prior to the agreement, Minera Yanacocha was operated by three partners: Newmont with 51.35%, Buenaventura with 43.65% and Sumitomo Corp. with the remaining 5% share.