Cripple Creek and Victor

US-based Newmont Mining is reportedly holding discussions with South African company AngloGold Ashanti to buy its Cripple Creek & Victor gold mine in Colorado.

The price for the Cripple Creek & Victor mine is expected to be below $1bn, sources with knowledge of the matter told Reuters.

If AngloGold finalises and agrees for the sale, the asset may be sold for between $700m and $800m.

Investment bank BMO Capital Markets is leading the sale process, which is expected to result in partial sale of the asset, one source said.

In case Newmont cannot strike the deal, other interested gold mining firms including Iamgold, Kinross, Goldcorp, and Yamana may resume discussions to buy AngloGold’s Cripple Creek asset.

Hecla Mining external affairs vice-president Luke Russell told the news agency that the company was interested in the property but decided not to bid.

AngloGold Ashanti owns and operates the Cripple Creek & Victor Gold Mine through its subsidiary, Cripple Creek & Victor Gold Mining.

From the open-pit operation, formerly known as Cresson Mine, gold is recovered from the ore by heap leaching.

In April, gold mining company AngloGold announced that it was on look out for a buyer for its Cripple Creek & Victor property as part of its strategy to cut its debt pile of $3.1bn by at least $1bn over the next one to three years.

Image: Cripple Creek & Victor open-pit gold mine, north of Victor, Colorado in US. Photo: courtesy of Plazak.