A Colorado mining company has polished up an $820 million deal.
completed the acquisition of the from majority owner and manager AngloGold Ashanti Ltd. on Monday.
In addition to $820 million in cash, the agreement includes a 2.5 percent royalty on any potential future gold production from underground ore. This .
The Cripple Creek & Victor mine, a low-grade, surface mining operation near Victor in Teller County, is the first active Colorado operation for Greenwood Village-based Newmont since the late 1970s.
, the mine produced 210,921 ounces of gold and 110,383 ounces of silver in 2014. In June, a Newmont spokesman said the company planned to retain the mine’s workforce of 570.
“CC&V is a value accretive acquisition that adds profitable production and free cash flow while improving our portfolio mine life and costs in a favorable jurisdiction,” said Gary Goldberg, Newmont’s president and chief executive, in a statement.
Goldberg said Newmont, a leading gold and copper producer, hopes to lower CC&V’s direct mining costs by up to 10 percent and improve recoveries.
The mine near Cripple Creek is undergoing an expansion project. When completed, the operation will include a new mill, new leach facility and a recovery plant. Construction is expected to continue through 2016.
Newmont also operates in Nevada, Australia, New Zealand, Ghana, Peru, Suriname and Indonesia.
Tierra Smith: 303-954-1046, tsmith@denverpost.com or twitter.com/ByTierraSmith
