Tuesday, March 2, 2010

Newmont Mining (NYSE:NEM) Sells Amulsar Gold Project

Newmont Mining Sells Stake in Amulsar Gold Project to Lydia International

Newmont Mining (NYSE:NEM) has sold its stake in the Amulsar Gold Project in Armenia to partner Lydian International Ltd (TSE:LYD), in deal involving cash and stock.

Terms of the deal include Geoteam C.J.S.C., a division of Lydia, to acquire the company for $15 million in cash, along with close to 3 million in shares of the company. The $15 million will reportedly be paid in three $5 million installments.

The overall deal values the Amulsar Gold Project at close to $25 million, after applying a 10 percent discount rate.

After the deal closes, Newmont will completely exit the joint venture and Geoteam will totally own the Amulsar Gold Project at that time.

Lydian Chief Executive Officer Tim Coughlin said the reason for the deal was to get the "Amulsar gold project into production by 2013."

Newmont Mining Sells Stake in Amulsar Gold Project to Lydia International

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