Newmont Forms New Strategic Partnership with Maverix Metals Through Royalty Sale

DENVER--()--Newmont Mining Corporation (NYSE: NEM) (Newmont or the Company) today announced that it has entered into an agreement to sell its royalty portfolio (the Transaction) to Maverix Metals Inc. (TSX-V: MMX) (Maverix), an emerging precious metals royalty and streaming company. In connection with the Transaction, Newmont will receive 60 million Maverix common shares, representing an ownership interest of approximately 28 percent; $17 million in cash; and warrants for an additional 10 million common shares.

“Our strategic partnership and equity interest in Maverix generates value for both companies’ shareholders”

Newmont’s royalty portfolio includes 54 precious metals and industrial minerals royalties, including royalties at TMAC Resources’ Hope Bay mine in Canada and Premier Gold’s McCoy Cove project in Nevada.

“Our strategic partnership and equity interest in Maverix generates value for both companies’ shareholders,” said Randy Engel, Executive Vice President, Strategic Development. “Maverix’s management team has a strong track record of managing and growing high-quality royalty and streaming assets in favorable mining districts on four continents.”

In connection with the Transaction, the parties will enter into a shareholder agreement which will entitle Newmont to a seat on Maverix’s Board of Directors and pre-emptive rights to participate in future financings to maintain the Company’s ownership stake. Newmont’s strategic partnership will provide ongoing exposure to Maverix’s growing portfolio, which currently includes 27 high-quality royalties and streams, 10 of which are on producing mines. Closing of the Transaction is expected to occur in the second quarter of 2018.

About Newmont

Newmont is a leading gold and copper producer. The Company’s operations are primarily in the United States, Australia, Ghana, Peru and Suriname. Newmont is the only gold producer listed in the S&P 500 Index and was named the mining industry leader by the Dow Jones Sustainability World Index in 2015, 2016 and 2017. The Company is an industry leader in value creation, supported by its leading technical, environmental, social and safety performance. Newmont was founded in 1921 and has been publicly traded since 1925.

Legal Cautionary Statements

Upon completion of the sale, Newmont will have acquired ownership of 60 million common shares of Maverix. The common shares to be acquired by Newmont represent approximately 28 percent of the issued and outstanding common shares of Maverix. Assuming full exercise of the warrants, Newmont will hold 70 million common shares, which would represent approximately 31 percent of the issued and outstanding common shares of Maverix. Prior to this acquisition, Newmont did not own any securities of Maverix. Newmont acquired the common shares for investment purposes. Newmont will evaluate its investment in Maverix from time to time and may, based on such evaluation, market conditions and other circumstances, increase or decrease shareholdings as circumstances require, subject to the terms of the investment agreement. A copy of the early warning report filed by Newmont in connection with the acquisition will be available on Maverix’s SEDAR profile. In order to obtain a copy of the early warning report, please contact Jessica Largent, Vice President, Investor Relations at Newmont, at telephone number: 303.837.5484. Newmont’s head office is located at 6363 South Fiddler’s Green Circle, Suite 800, Greenwood Village, CO 80111.

This release contains “forward-looking statements” within the meaning of applicable securities laws that are intended to be covered by the safe harbors created by Section 27A of the U.S. Securities Act of 1933, as amended, Section 21E of the U.S. Securities Exchange Act of 1934, as amended, and other securities legislation, including statements that use forward-looking terminology such as “may,” “will,” “expect,” “anticipate,” “potential,” “mission” or other variations thereof or comparable terminology. Such forward-looking statements may include, without limitation, statements regarding the anticipated closing of the Transaction, execution of the shareholders agreement, the receipt by Newmont of the consideration and future value creation and returns in connection with the Transaction, and are based on current expectations that involve a number of risks and uncertainties. Forward-looking statements are subject to other factors that could cause actual results to differ materially from expected results. Investors should not place undue reliance on forward-looking statements. Factors that could cause actual results to differ materially from any forward-looking statement include, but are not limited to, the failure to receive regulatory approval for and the inability to close the Transaction. For a discussion of such risks relating to Newmont’s business and other factors, see the Company’s Form 10-K, filed on or about February 22, 2018, with the Securities and Exchange Commission (“SEC”) under the headings “Risk Factors” and “Forward-Looking Statements,” and other SEC filings. Newmont 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. 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.

Contacts

Newmont Mining Corporation
Investor Contact
Jessica Largent, 303.837.5484
jessica.largent@newmont.com
or
Media Contact
Omar Jabara, 303.837.5114
omar.jabara@newmont.com

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Newmont Forms New Strategic Partnership with Maverix Metals Through Royalty Sale

Newmont Mining Corporation