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Newmont Corporation (NYSE: NEM) To Acquire Newcrest in Australia after Completion Of Due Diligence

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Newmont Corporation (NYSE: NEM) inches up in early trading session on Monday following the conclusion of due diligence, the company stated that it has engaged into a binding Scheme Implementation Deed (“SID”) under which Newmont would acquire 100 percent of the outstanding share capital of Newcrest under an Australian court-approved Scheme of Arrangement.

The President and CEO of Newmont, Tom Palmer stated that for shareholders and other stakeholders, the merger of Newmont and Newcrest provides an extraordinary value proposition. It establishes an industry-leading portfolio with a multi-decade gold and copper production profile in the world’s best mining jurisdictions. They have identified a number of possibilities to unlock significant value following a thorough due diligence process, and they will apply their knowledge and skills to Newcrest’s complementary and excellent portfolio of long-life, low-cost gold and copper assets. They are positioned to deliver an estimated $500 million in annual synergies and an estimated $2 billion in incremental cash flow from portfolio optimization opportunities, leveraging their experience from the acquisition of Goldcorp four years ago, as part of their strategy to maximize value for shareholders and other stakeholders.

“This transaction also increases Newmont’s annual copper production – a metal critical to the new energy economy – and adds nearly 50 billion pounds of copper reserves and resources from Newcrest to our robust and balanced portfolio7,” Mr. Palmer stated. We plan to seize these possibilities as soon as possible in order to produce greater value for our shareholders, workers, host communities, and governments.”

Newcrest Chairman Peter Tomsett said, “This transaction combines two of the world’s leading gold producers, bringing forward significant value to Newcrest shareholders through the recognition of our outstanding growth pipeline. In addition to the continued benefits of combining these excellent portfolios, the merged business will establish a new gold production benchmark while benefiting from a significant and rising exposure to copper and a market-leading position in safety and sustainability. The idea has been unanimously recommended by the Newcrest Board. We are extremely pleased of the whole Newcrest team for creating a world-class metals business that will be an important component of the merged organization. We feel that our shareholders and other stakeholders may look forward to a bright and interesting future.”

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