Business
Proposed acquisition of 44% stake in Penmont JV
Proposed acquisition of 44% stake in Penmont JV.
About this update from Fresnillo Plc
[{"type":"text","content":"\n \nRNS Number : 4867R Fresnillo PLC 12 September 2014 \n\nFresnillo plc\nBinding agreement signed to acquire Newmont Mining's 44% interest in the Penmont Joint Venture\n \n Highlights \n· The acquisition of Newmont's 44% stake in the Penmont Joint Venture (\"JV\"), comprising the Herradura, Noche Buena and Soledad Dipolos mines, the Mega Centauro and Centauro Deep advanced exploration projects and a number of key exploration prospects, for a total cash consideration of US$450 million \n· Fresnillo currently holds a 56% interest in the JV and would hold a 100% interest post completion of the acquisition\n· Consolidates control of producing and exploration assets already operated by Fresnillo and builds on the Company's leading position in the Herradura Corridor, one of Mexico's most prospective gold belts\n· Enables Fresnillo to implement strategy of developing quality assets in a key growth area and continue aggressive regional exploration programme:\no Mega Centauro and Centauro Deep advanced exploration projects with near-term production potential; lower risk as they are expansions of current ongoing operations \no three key exploration projects: Tajitos, Bellavista and Las Norias\no multiple additional exploration targets identified \n· The acquisition is consistent with previously announced growth strategy and meets Fresnillo's key acquisition criteria: \no transaction is immediately earnings accretive, with further upside potential from Mega Centauro and Centauro Deep\no average life of mine All-In Sustaining Costs (AISC) on current and future production is expected to be low\no significant exploration and development upside potential\n· Adds 2.0 million ounces to reserve and 5.1 million ounces to resource base \n· The acquisition is conditional on Fresnillo shareholder approval. A circular setting out further details of the transaction, together with the notice convening the general meeting, will be published and posted to Fresnillo shareholders \n \nOctavio Alvídrez, Chief Executive Officer of Fresnillo plc, said:\n\"The acquisition of the Penmont asse...