MEXICO CITY (dpa-AFX) - Fresnillo plc (FRES.L) has agreed to buy a 44 percent stake in the Penmont joint venture, which is held by Newmont Mining Corp. ( NEM), for $450 million in cash. The transaction, with a gross value of about $477 million, is immediately earnings accretive and expected to close by early October 2014. Currently, Fresnillo owns a 56 percent stake in the JV and post acquisition it would hold 100 percent interest.
The stake acquired includes the Herradura, Noche Buena and Soledad Dipolos mines, the Mega Centauro and Centauro Deep advanced exploration projects and a number of key exploration prospects.
Commenting on the acquisition, Octavio Alvídrez, Chief Executive of Fresnillo said: 'The acquisition of the Penmont assets from our JV partner Newmont would see Fresnillo assume control of a quality portfolio of assets which would significantly enhance our gold production and be central to our growth.' 'Acquiring full control of the Herradura and Noche Buena mines and the key exploration assets in the JV should enable us, with our current operations, to increase our target of reaching 500,000oz of attributable gold production by 2018 to 750,000oz,' he added.
Copyright RTT News/dpa-AFX