The miner will sell the mine to Northern Star for about $77 million. Northern Star will pay Newmont another payment of about $14 million for working capital, bringing Newmont's total proceeds from the deal to about $91 million.
"We are pleased to announce our agreement with Northern Star. It demonstrates our continuing efforts to optimize our portfolio and increase shareholder value by focusing on lower cost, longer life operations," said Randy Engel, Newmont Executive Vice President for Strategic Development, in a press release.
The deal is expected to close in early July.
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TheStreet Ratings team rates NEWMONT MINING CORP as a Sell with a ratings score of D+. TheStreet Ratings Team has this to say about their recommendation:
"We rate NEWMONT MINING CORP (NEM) a SELL. This is driven by a number of negative factors, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, weak operating cash flow, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share."