DENVER—Newmont Mining Corp. said Friday it has agreed to sell its royalty assets and other noncore investments to a Canadian mining company for about $1.3 billion.
Denver-based Newmont, one of the world’s largest gold companies, said the sale is part of an initiative announced earlier this year to monetize parts of its royalty and equity portfolio to fund development of its core business.
The buyer, Canada’s Franco-Nevada Corp., is a royalty company that invests in mine operations globally.
Newmont President and Chief Executive Officer Richard O’Brien called the initiative “a dual-track process to maximize the value of these assets for the benefit of our shareholders.”
Newmont said it expects to record a pretax gain from discontinued operations of nearly $1 billion in the fourth quarter.
“We remain focused on our core gold operations and intend to reinvest the proceeds to increase gold price leverage for our shareholders,” he said.
In connection with the asset sale, transaction, Pierre Lassonde resigned from Newmont’s board and will serve as non-executive chairman of Franco-Nevada’s board of directors.
Newmont shares fell $1.70, or 3.3 percent, to $49.69 Friday.
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