Newmont Corporation has agreed to acquire Canadian miner GT Gold Corp for $US311 million ($402 million) in a deal that will bolster its copper-gold output.
A key driver of the agreement is GT Gold’s Tatogga project in British Columbia, Canada, which is 20 kilometres from Newmont’s Red Chris copper-gold mine.
The project’s Saddle North deposit contains an indicated resource of 298 million tonnes with 1.81 billion pounds of copper and 3.47 million ounces of gold.
Newmont president and chief executive Tom Palmer said the company would work with Indigenous communities to advance the project.
“We are excited to expand our world-class portfolio to include the Tatogga project in the Tahltan Territory located in the highly sought-after Golden Triangle district of British Columbia, Canada,” he said.
“We understand and acknowledge that Tahltan consent is necessary for advancing the Tatogga project and we will partner with the Tahltan Nation at all levels, and with the Government of British Columbia to ensure a shared path forward.”
According to Newmont, the Tatogga project will bolster its gold and copper production further, adding to its interest in British Columbia’s Golden Triangle.
Newmont currently holds 50 per cent ownership of the Galore Creek copper-gold mine in the Golden Triangle with Teck Resources.
The Tahltan Central Government (TCG), the governing body of the Tahltan nation, has also acknowledged the agreement.
“Newmont is a major international mining company who already has an established relationship with the Tahltan Nation as Newmont owns 50 per cent of the Galore Creek Mining Corporation, whose project is in Tahltan Territory,” TCG president Chad Norman Day said.
“TCG understands the sensitivities of all mining projects and has communicated with Newmont that Tahltan consent is a requirement for the advancement of any project in Tahltan Territory.
“The TCG looks forward to working with Newmont in a respectful, meaningful and mutually beneficial way.”
The agreement will see the remaining 85.1 per cent of common shares from GT Gold that are not already owned by Newmont, acquired at $C3.25 ($3.33) per share.
Newmont expects the acquisition to be finalised in the second quarter of this year.