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Newmont and Newcrest set shareholder meetings for proposed merger

EditorPollock Mondal
Published 2023-09-08, 12:16 a/m
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Newmont Corporation (NYSE: NEM, TSX: NGT) has announced a special meeting of stockholders in connection with the company's proposed acquisition of Newcrest Mining (OTC:NCMGF) Limited (ASX, TSX, PNGX: NCM). The meeting will take place virtually on Wednesday, October 11, 2023, according to a statement released on Friday.

Newmont stockholders will vote on various proposals, including the issuance of shares of Newmont common stock as part of the Scheme of Arrangement. The board of directors at Newmont unanimously recommends that stockholders vote in favor of all proposals included in the definitive proxy statement.

In a parallel move, the Federal Court of Australia has ordered Newcrest to convene a meeting of its shareholders to consider and vote on the Scheme. This meeting will be held both in person and online on Friday, October 13, 2023.

Tom Palmer, Newmont's president and chief executive officer, said upon approval, "Newmont and Newcrest shareholders will own an unmatched portfolio of gold and copper assets, including 10 Tier 1 operations, each with the scale, mine life and cost profile to sustain profitable production and best-in-class sustainability performance decades into the future."

The definitive agreement for Newmont to acquire Newcrest was announced on May 14. The merger would create a portfolio with the highest concentration of Tier 1 operations primarily in favorable, low-risk mining jurisdictions. The combined company is expected to deliver a multi-decade production profile from these operations while increasing annual copper production mainly from Australia and Canada.

The anticipated benefits include annual pre-tax synergies of $500 million within the first two years after closing. Additionally, at least $2 billion in cash improvements are targeted through portfolio optimization within the same timeframe.

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Newmont is recognized as the world's leading gold company with additional production of copper, silver, zinc and lead. Its portfolio of assets is located in favorable mining jurisdictions in North America, South America, Australia and Africa. Newmont is the only gold producer listed in the S&P 500 Index and is known for its strong environmental, social and governance practices.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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