By Cassandra Jaramillo 

Gold and copper producer Newmont Mining Corp. said Friday that it had agreed to sell its Waihi operations in New Zealand to OceanaGold Corp. for $101 million.

Newmont, which is based in Greenwood Village, Colo., said the deal strengthens its balance sheet and gives it more financial flexibility. In addition to the $101 million, the deal also includes a $5 million contingent payment and a 1% royalty on a recent discovery north of Waihi's current operations.

The New Zealand operations in Waihi produced approximately 132,000 ounces of gold in 2014, the company said. OceanaGold will acquire all of Waihi's mining assets and liabilities.

The boards of each company have approved the deal, which is expected to close later this year.

Shares of Newmont slipped 3.8% to 25.79 in midday trading amid a broader selloff in mining stocks.

Write to Cassandra Jaramillo at cassandra.jaramillo@wsj.com

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