Monday June 10, 1:58 pm Eastern Time
Press Release
SOURCE: Newmont Mining Corporation
Newmont Agrees to Support Kinross Combination
DENVER, June 10 /PRNewswire-FirstCall/ -- Newmont Mining Corporation (NYSE: NEM; ASX) (Toronto: NMC - News) announced that it has agreed to support the proposed combination announced earlier today of Kinross Gold Corporation, TVX Gold Inc. and Echo Bay Mines Ltd. Newmont has agreed to vote its 45.2 percent equity holding in Echo Bay in favor of the combination. In addition, subject to a closing of the combination, Newmont has agreed to sell its 49.9 percent interest in the TVX Newmont Americas joint venture for $180 million. The combination is subject to regulatory and shareholder approvals by Kinross, TVX Gold and Echo Bay.
Pierre Lassonde, president of Newmont, stated,"Newmont supports the transaction as part of the ongoing rationalization of the gold industry. Creating a new, substantial gold company will benefit all of the shareholders involved, including Newmont. As stated earlier this year, Newmont will continue to evaluate its portfolio of non-core assets as we seek to maximize the value of these assets in light of our objective of reducing net debt to less than 20% of total capitalization employed by year-end."
On closing of this transaction, Newmont will have generated proceeds from the sale of non-core assets totaling over $400 million this year. This exceeds the original target of $250 million to $300 million for the year.
Newmont, based in Denver, is the world's premier gold company and the largest gold producer with significant assets on five continents.
CAUTIONARY STATEMENT
This news release contains"forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and are intended to be covered by the safe harbor created thereby. Such forward-looking statements include, without limitation, (i) statements regarding the potential closing of a proposed business combination and related transactions; (ii) statements regarding future debt repayments; and (iii) statements regarding future asset sales or rationalization efforts. Where the company expresses or implies an expectation or belief as to future events or results, such expectation or belief is expressed in good faith and believed to have a reasonable basis. However, such forward-looking statements are subject to risks, uncertainties and other factors which could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. For a more detailed discussion of such risks and other factors, see Page 8 of the company's 2001 Annual Report on Form 10-K, which is on file with the Securities and Exchange Commission, as well as the company's other SEC filings.
SOURCE: Newmont Mining Corporation
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