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Newmont Mining Corporation (ticker: NEM, exchange: New York Stock Exchange) News Release - 10/25/2001
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Newmont, Getchell Sign Letter of Intent on Purchase Of Ore and Land Sale in Nevada
DENVER, Oct. 25 /PRNewswire/ -- Newmont Mining Corporation (NYSE: NEM) and Getchell Gold Corporation, a wholly-owned subsidiary of Placer Dome America, have signed a letter of intent under which Newmont will buy ore from Placer Dome's Getchell underground mine in Humboldt County, Nevada for processing at Newmont's adjacent Twin Creeks mine.
Under the agreement, which runs for thirty months or until a maximum of approximately one million tons of ore is sold, Newmont receives a credit for its processing cost, plus a fee. Processing is scheduled to begin late this quarter at Twin Creeks' Sage Mill autoclaves. Currently, there are 160,000 tons of ore available in stockpiles from the Getchell mine. Additional tons may come from any future mining done at the Getchell mine, subsequent to a positive decision regarding the mine's future development. Closing of the definitive agreement is expected in the fourth quarter.
In addition to the ore sales agreement, Newmont has agreed to purchase the eastern half of the Section 13 property from Getchell Gold, located northwest of the current Twin Creeks pit. Newmont will pay $1 million for the property, due one year after signing of the agreement. In addition, Newmont will pay Getchell a gross royalty of two percent on any gold, over 50,000 ounces, processed from Getchell's portion of Section 13. Newmont expects to begin mining Section 13 in 2002. The ore will be processed using heap leaching.
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SOURCE Newmont Mining Corporation
CONTACT: media, Doug Hock, +1-303-837-5812, or investors, Wendy Yang, +1-303-837-6141, both for Newmont Mining Corporation; or Brenda Radies for Placer Dome America, +1-604-661-1911/
newmont.com
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