Privately held mining company TMAC Resources has signed a letter of intent to acquire Hope Bay project from Newmont Mining to enhance its mining portfolio.
As per the retrieved terms of agreement with a maturity date of 31 March 2013, Newmont is to gain a considerable stake in TMAC.
Talking about the possible acquirers, Newmont strategic development executive vice president Randy Engel has stated that TMAC would be the ideal partner for the miner to develop the project.
"TMAC’s management team has a proven track record of developing projects with similar characteristics, both profitably and responsibly, while maximizing value for shareholders and other stakeholders," added Engel.
The proposed project is located in Nunavut, Canada for which Newmont reportedly raised a $1.6bn write-down in January 2012.
Newmont in its statement said that TMAC has an encouraging track record for developing high grade, profitable underground mines.