Newmont to Sell Australian Gold Mine to Northern Star

   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 [e-mail]

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