Newmont Corp. has completed the sale of its 19.9% equity stake and convertible bond in Continental Gold Inc. for $260 million in cash. The sale was part of a contractual arrangement to support Zijin Mining Group’s acquisition of Continental.
“Selling our Continental stake into a strong bid allowed us to generate $260 million in cash that will support our disciplined approach to capital allocation, including strengthening our investment-grade balance sheet, investing in our highest returning projects, and returning excess cash to our shareholders,” President and CEO Tom Palmer said. “Combined with the sale of our interests in Continental and KCGM, once we complete the sale of Red Lake this quarter, we will have generated more than $1.4 billion in asset sales in less than a year since closing the Goldcorp acquisition last April.”
Colombia-based Continental Gold’s flagship project is the Buriticá gold project located in the middle Cauca belt in the northwest region of Colombia. Fully permitted and on schedule for 2020 production, the project is easily accessible by an approximately two-hour drive on the paved Pan-American highway from Medellín, Colombia’s second-largest city.
