This week saw mining companies rid themselves of stock to raise capital funds for mine investment, including Newmont and Gold Hawk.
Newmont Mining decided to divest its 10% stake in Indonesian unit PT Newmont Nusa Tenggara (PTNNT) to the governments of West Nusa Tenggara province and West Sumbawa and Sumbawa regencies for $391m.
Newmont originally planned the sale in 2006 and 2007 for a majority stake in the facility to local buyers.
Newmont currently holds 45% interest in PTNNT while Sumitomo has 35%.
In a similar move, the stakeholders of Gold Hawk Resources approved the sale of 85% of the Coricancha mine near Lima to Nyrstar Netherlands for $15m in cash.
Gold Hawk will use the proceeds to finance business opportunities in the mining sector.
Meanwhile, Franco-Nevada signed an agreement to acquire Moydow Mines International in consideration for $58m.
The acquisition, expected to conclude in January 2010, includes Moydow’s 2% net smelter returns royalty (Ntotoroso Royalty) on part of Newmont Mining’s Ghana-based Ahafo gold mine.
Lucara Diamond has signed an agreement to purchase a 70.268% stake in Boteti Exploration, which owns 100% stake in De Beers Prospecting Botswana‘s AK6 advanced diamond development project.
The acquisition will strengthen Lucara’s portfolio and help the company consolidate diamond production in Africa.
In another deal, Ruby Creek Resources has undertaken a joint venture with Douglas Lake Minerals for a 70% stake in Douglas’ Mkuvia Alluvial gold project.
The deal encompasses 125km2 of Douglas’ 380km2 Mkuvia property for $3m over three years.
Australian iron ore company Sundance Resources gathered $79m (A$85m) from institutional investors to develop its Mbalam iron ore project in Cameroon.
The institutional investors will receive 567 million shares issued at A$0.15 per share, subject to approval from shareholders.
Sundance will utilise the proceeds to undertake a definitive feasibility study on the project, execute drilling to delineate more high-grade mineralisation and to meet the working capital requirements.