Orla Mining to Acquire Newmont’s Musselwhite Operation in Ontario for $850 Million
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Newmont Corporation has agreed to sell its Musselwhite operation in Ontario, Canada, to Orla Mining Ltd. for up to $850 million in total consideration.
Under the terms of the agreement, Newmont will receive cash consideration of $810 million upon closing and up to $40 million in contingent payments. The transaction is expected to close in the first quarter of 2025, subject to certain conditions being satisfied.
“We are pleased to be selling our Musselwhite operation to Orla and have full confidence that they will continue to operate responsibly, while maintaining strong partnerships with the mine’s workforce and local and Indigenous communities,” said Tom Palmer, Newmont’s president and chief executive officer.
“Today’s announcement signifies Newmont’s continued progress toward building our go-forward portfolio and delivering on the transaction commitments we made at the beginning of the year. The announced divestitures are expected deliver up to $2.9 billion in gross proceeds to support Newmont’s capital allocation priorities, which include strengthening our balance sheet and returning capital to shareholders,” added Palmer.
“This acquisition is a significant milestone for Orla Mining. It more than doubles our annual production, while providing us with a presence in Ontario, Canada, one of the premier mining jurisdictions in the world and where I began my career. We intend to not only continue to operate Musselwhite, but to seek optimization opportunities and to invest in its future, grow its reserves and resources, and extend its mine life. The mine has a proven history of successful production, cash generation, and reserve replacement, having consistently added to mine life,” said Jason Simpson, Orla’s president and chief executive officer.
“We have been impressed with the operating team at Musselwhite, which runs an exceptional mine and has developed positive and strong ties with First Nations, local partners, and community members. We are fully committed to respecting and growing these relationships,” added Simpson.
In February 2024, Newmont announced the intent to divest its non-core assets, including six operations and two projects from its Australian, Ghanaian, and North American business units. With definitive agreements in place to divest the assets in Australia, Ghana, and now Musselwhite, the company is focused on completing the sales processes for its other North American non-core assets, which are expected to conclude in the first quarter of 2025.
Newmont is the world’s leading gold company and a producer of copper, zinc, lead, and silver. The company’s world-class portfolio of assets, prospects and talent is anchored in favorable mining jurisdictions in Africa, Australia, Latin America & Caribbean, North America, and Papua New Guinea. Newmont is the only gold producer listed in the S&P 500 Index and is widely recognized for its principled environmental, social, and governance practices. Newmont is an industry leader in value creation, supported by robust safety standards, superior execution, and technical expertise. Founded in 1921, the company has been publicly traded since 1925.
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