Newmont Corp. signed an agreement with Compañía de Minas Buenaventura to purchase its 43.65% interest in the Yanacocha mine, Peru’s largest gold mine.
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.