China’s Zijin Mining Group is set to buy the Akyem gold mine project in Ghana from US-based Newmont Corp for US$1B, the companies said on Wednesday.
The sale is part of Newmont’s ongoing efforts to divest its non-core assets as the company makes a strategic shift to focus on its tier one assets, the gold producer said.
Newmont is expected to receive a cash consideration of US$900M upon closure of the deal, and a further US$100M upon satisfaction of certain conditions.
Additionally, the deal will see Zijin’s unit Gold Source International acquiring a subsidiary of Newmont, which in turn owns the Akyem project.
Zijin stated that given the current and anticipated future gold price, it believes the project’s utilizable resources and reserves still have significant potential.
The mining giant has received interest from certain Ghanaian entities in acquiring a minority stake in the asset and is open to exploring such potential transactions. The deal is expected to close this quarter, subject to regulatory approvals.
