Newmont Mining has signed an agreement with Fronteer Gold to acquire all of its outstanding common shares for C$2.3bn ($2.32bn).

Under the arrangement, Fronteer Gold shareholders will receive C$14 ($14) in cash and one common share in a new company, Pilot Gold, which will own certain exploration assets of Fronteer Gold, for each common share.

Fronteer Gold owns a 100% interest in the Long Canyon and Northumberland project and JV interests in the Sandman project, all located in Nevada, US, with a total measured and indicated gold resources of 4.2 million ounces and inferred resources of 1.7 million ounces.

Newmont Mining president and CEO Richard Brien said the Long Canyon project, with its Carlin trend-like metallurgical and geological characteristics, complements the company’s existing project pipeline in Nevada.

“This combination of assets will allow Newmont to leverage our expertise and extensive infrastructure in the region,” Brien said.