DENVER, March 20 /PRNewswire-FirstCall/ -- Newmont Mining Corporation announced that it had received all Australian government approvals for the acquisition of Newcrest Mining Limited's 22.22% interest in the Boddington Project in Western Australia, and that the transaction has now closed. Consideration for the purchase was Australian $225 million and gives Newmont a two-thirds interest in the Boddington Project.
The Company has previously announced that it is proceeding with development of Boddington with its partner AngloGold Ashanti Limited for expected initial production in late 2008. At year-end 2005, Newmont reported equity gold proven and probable reserves at Boddington of 5.16 million ounces. The project has a current estimated mine life of more than 15 years, and Newmont's share of annual production is expected to be approximately 700,000 ounces for the first five years and average approximately 600,000 ounces over the life of the project. Costs applicable to sales, net of by-product credits, are expected to be approximately $210 per ounce.
Cautionary Statement
This news release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that are intended to be covered by the safe harbor created by such sections. Such forward-looking statements include, without limitation, (i) estimates of future production, timing of initial production, and project life;(ii) estimates of reserves;(iii) statements regarding future development and construction; and (iv) estimates of costs applicable to sales. Where the Company expresses or implies an expectation or belief as to future events or results, such expectation or belief is expressed in good faith and believed to have a reasonable basis. However, forward-looking statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from future results expressed, projected or implied by such forward-looking statements. Such risks include, but are not limited to, gold and other metals price volatility, currency fluctuations, increased production costs and variances in ore grade or recovery rates from those assumed in mining plans, political and operational risks in the countries in which we operate, and governmental regulation and judicial outcomes. For a more detailed discussion of such risks and other factors, see the Company's 2004 Annual Report on Form 10-K, which is on file with the Securities and Exchange Commission, as well as the Company's other SEC filings. The Company does not undertake any obligation to release publicly revisions to any "forward-looking statement," to reflect events or circumstances after the date of this news release, or to reflect the occurrence of unanticipated events, except as may be required under applicable securities laws.
