Under the deal, Newmont has acquired an option on certain mining and mineral rights related of Kirkland’s Holt Royalty property for $75m
Newmont signs agreement with Kirkland Lake for exploration opportunities. (Credit: Michal Jarmoluk/Pixabay.)
US-based Newmont has signed a strategic alliance agreement with Kirkland Lake Gold for exploration and development opportunities around Kirkland’s Holt Complex and Newmont’s properties in Timmins, Canada.
As part of the deal, the gold mining company has acquired an option on certain mining and mineral rights related of Kirkland’s Holt Royalty property for $75m.
Newmont said that the option can be utilised only when Kirkland plans to restart Holt Mine operations and process material subject to the Holt Royalty.
Upon assumption of certain liabilities connected to Holt Mine property, the option may be terminated by Kirkland.
Newmont, Kirkland will work to identify other regional exploration opportunities
Newmont said: “As a result of the Strategic Alliance Agreement and the Option, Newmont expects to remove the approximately $350 million liability for the Holt Royalty on its balance sheet at June 30, 2020 and record a gain of approximately $275 million in Net income (loss) from discontinued operations in its results for the third quarter of 2020.”
Additionally, the companies are also expected to work together to identify additional regional exploration opportunities on their existing properties where they may be able to cooperate in the future.
Newmont said that the strategic alliance activities will be managed by Kirkland.
Furthermore, Kirkland will retain the ownership of the Holt Mine property along with the Holt Mill.
The other Holt Complex assets as well as the Holloway and Taylor mines are not included in the option.