Newmont Mining (NEM.US) will sell its Ontario gold mine to Orla Mining (ORLA.US) for up to $850 million.

Newmont Mining (NEM.US) announced on Monday that it has agreed to sell its Musselwhite gold mine in Ontario to Orla Mining (ORLA.US) for a price of $850 million, including $810 million in upfront cash consideration and $40 million in contingent consideration linked to the price of gold. With the finalization of the sale agreement for its Australian, Ghanaian, and Musselwhite assets, Newmont Mining stated that it will focus on completing the divestiture process of other non-core assets in North America, expected to be completed by the first quarter of 2025. Newmont Mining stated that it will continue to utilize its operational free cash flow and asset divestiture proceeds to enhance shareholder value through buybacks based on estimated tax basis, and has authorized a $3 billion share buyback plan to be completed by October 2026. The company also noted significant progress in achieving its target debt balance of $8 billion and plans to repay approximately $500 million in debt by 2024. For Orla Mining, this transaction adds a second high-quality, high-profit production asset to its portfolio. The combination of the Musselwhite mine and the Mexico-based Camino Rojo oxide mine more than doubles its gold production to over 300,000 ounces annually.