By Rhiannon Hoyle
SYDNEY--Newmont Mining Corp. (NEM.AU) has agreed to sell its
Jundee gold mine in Western Australia to Perth-based gold producer
Northern Star for 82.5 million Australian dollars (US$77.2
million).
For Northern Star, the deal follows its acquisition from Barrick
Gold Corp. (ABX) of the Plutonic, Kanowna Belle and Kundana gold
mines, also in Western Australia, for a total A$100 million. The
company expects the deal to lift its output to 550,000 troy ounces
next fiscal year from around 350,000 ounces currently.
The Jundee mine, more than 500 kilometers north of the
Australian mining town Kalgoorlie, began operating in 1995 as an
open-pit mine before moving underground.
Northern Star--which will take on Newmont's existing staff as
part of the agreement--said it would fund the deal through existing
cash reserves and a A$100 million debt facility committed by
Investec Bank Group.
Write to Rhiannon Hoyle at rhiannon.hoyle@wsj.com
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