Newmont Mining to Buy Colorado Gold Mine From AngloGold Ashanti for $820 Million

By Nathan Becker 

Newmont Mining Corp. said it has reached a deal to buy the Cripple Creek & Victor gold mine from AngloGold Ashanti Ltd. for $820 million in cash, plus a cut of future returns.

The gold and copper producer said it would fund the deal by issuing about 29 million shares, in addition to using cash from its balance sheet. Newmont also offered underwriters the option to purchase as many as 4.35 million additional shares in the offering.

The deal for the mine is expected to close in the third quarter, pending regulatory approval and other conditions. Newmont said it plans to retain CC&V's work force.

The CC&V mine is located in Colorado, where Newmont is based.

Last week, Newmont said it had agreed to sell its Waihi operations in New Zealand to OceanaGold Corp. for $101 million, saying it gave the company a stronger balance sheet and more financial flexibility.

Write to Nathan Becker at [e-mail]

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