DENVER--(BUSINESS WIRE)--

(NYSE: NEM, TSX: NGT) (Newmont or the Company) today announced it has entered into a contractual arrangement to support Zijin Mining Group’s bid to acquire Continental Gold Inc. (Continental) by selling its 19.9 percent equity stake and its convertible bond for $260 million. With the announced sale of Red Lake for $375 million, the Company expects to realize $635 million in total cash proceeds when the transactions close in the first quarter 2020.

“Newmont technical teams identified the potential of the deposit and have supported Continental as it advanced Buritica toward production,” said Tom Palmer, Newmont Chief Executive Officer and President. “While we have valued our partnership with Continental, this is an appropriate time to sell into a strong bid and remain focused on operating our world-class portfolio of assets, optimizing our leading project pipeline and investing in growing Reserves and Resources.”

Newmont intends to use proceeds from the transaction to support the Company’s priorities to return capital to shareholders, invest in profitable projects and strengthen the balance sheet.

The proposed transaction involves Newmont tendering its 19.9 percent equity stake and selling its convertible bond, thereby exiting from its shareholding in and financing arrangements with Continental. The transaction, which is expected to close in the first quarter 2020, is subject to Continental shareholder approval and certain closing conditions.

About Newmont

Newmont is the world’s leading gold company and a producer of copper, silver, zinc and lead. The Company’s world-class portfolio of assets, prospects and talent is anchored in favorable mining jurisdictions in North America, South America, Australia and Africa. Newmont is the only gold producer listed in the S&P 500 Index and is widely recognized for its principled environmental, social and governance practices. The Company is an industry leader in value creation, supported by robust safety standards, superior execution and technical proficiency. Newmont was founded in 1921 and has been publicly traded since 1925.

Cautionary Statement Regarding Forward-Looking Statements

This 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, which are intended to be covered by the safe harbors provided for under such sections. Forward-looking statements used herein may include, without limitation, estimates and expectations regarding the completion of the Zijin Mining purchase, the tender of Newmont’s equity stake and sale of convertible bond, receipt of related proceeds from the Zijin Mining transaction and the pending Red Lake sale transaction, anticipated timing of closing and receipt of cash proceeds, anticipated use proceeds, future return capital to shareholders and investment in projects, future balance sheet strength, and delivery of the Company’s business plan. Where the Company expresses 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, such 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 the “forward-looking statements.” The Continental transaction remains subject to the successful progression of the Zijin Mining bid, including receipt of Continental shareholder approval for the related arrangement agreement, the receipt of certain regulatory, court and stock exchange approvals and other closing conditions. The closing of the Red Lake transaction remains contingent on the receipt of regulatory approvals and satisfaction of conditions precedent. As such, no guarantees can be made with respect to the closing of the transactions or receipt of related proceeds. Estimates or expectations of future events are based upon certain assumptions, which may prove to be incorrect. For a more detailed discussion of risks and other factors that might impact future looking statements, see the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2019 under the heading “Risk Factors”, filed with the U.S. Securities and Exchange Commission (the “SEC”) and available on the SEC website or , as well as the Company’s other SEC filings, including the most recent Quarterly Report on Form 10-Q for the quarter ended September 30, 2019. The Company does not undertake any obligation to release publicly revisions to any “forward-looking statement,” including, without limitation, outlook, 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. Investors should not assume that any lack of update to a previously issued “forward-looking statement” constitutes a reaffirmation of that statement. Continued reliance on “forward-looking statements” is at investors' own risk.

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