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December 5, 2013

Klondex to acquire the Midas Mine and mill complex in US

Klondex Mines has signed an agreement with Newmont Mining to acquire the Midas mine and related ore milling facility in Nevada, US, for around $83m.

By admin-demo

Klondex Mines has signed an agreement with Newmont Mining to acquire the Midas mine and related ore milling facility in Nevada, US, for around $83m.

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As ore mines ramp up and come on stream, the total number of active surface machines (including trucks, excavators, shovels, loaders, graders and dozers) is forecast to rise from 141,470 in 2020 to 167,367 by 2025. This will be a CAGR of 3.4% from 2020 to 2025. The largest contributor to this growth is expected to be trucks, particularly smaller-sized trucks with shorter lifespans, used extensively in parts of Asia Pacific. Underground mining equipment is similarly expected to see a CAGR of 2.3% in this same time frame, with the number of mining trucks and loaders/LHDs in active underground mines expected to rise to 19,853 by 2025. GlobalData’s extensive mine-site research and equipment models have been used to build a complete view of mobile mining equipment populations globally for trucks, loaders, graders, dozers, excavators and shovels. This report includes informative breakdowns by each major region and key mining country, and also by major commodity. Read GlobalData’s Global Surface and Underground Mining Equipment: Populations & Forecast to 2025 for a complete view of the market, allowing you to best position yourself for the future.
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The Midas underground mine and mill complex is situated in north central Nevada, between Elko and Reno.

The purchase price of $83m, which is subject to customary adjustments, is comprised of approximately $55m in cash and $28m in surety payments to state and federal authorities.

Klondex will issue to Newmont 5 million common share purchase warrants of the company with a 15-year term, subject to acceleration in certain circumstances, and an exercise price to be specified on the closing date of the acquisition.

Newmont expects to close the transaction, which was subject to normal closing conditions, including regulatory and third-party approvals, by early 2014.

The Midas operation includes an underground mine, waste rock area, crushing plant, conventional mill, refinery, cyanide destruction circuit, tailings impoundment, and two settling ponds.

In addition, the mine provides ancillary facilities like a maintenance shop, warehouse complex, administration and security building, and facilities for distributing diesel fuel, gasoline and propane.

Newmont acquired Midas through its merger with Normandy in 2002.

Klondex president and CEO Paul Huet said tha the acquisition is transformational for Klondex during a pivotal point in the company’s development.

"I am confident that Klondex’s management team can leverage past experience, with some of the core leadership team having previously worked at Midas, to vastly benefit from the synergies and to unlock continued value in Klondex for shareholders going forward," Huet added.

Newmont executive VP for strategic development Randy Engel said, "This agreement underscores our ongoing commitment to optimising our portfolio, as we continue to focus on our longer-life and lower-cost core assets."

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Dig deeper with our mining equipment forecasts

As ore mines ramp up and come on stream, the total number of active surface machines (including trucks, excavators, shovels, loaders, graders and dozers) is forecast to rise from 141,470 in 2020 to 167,367 by 2025. This will be a CAGR of 3.4% from 2020 to 2025. The largest contributor to this growth is expected to be trucks, particularly smaller-sized trucks with shorter lifespans, used extensively in parts of Asia Pacific. Underground mining equipment is similarly expected to see a CAGR of 2.3% in this same time frame, with the number of mining trucks and loaders/LHDs in active underground mines expected to rise to 19,853 by 2025. GlobalData’s extensive mine-site research and equipment models have been used to build a complete view of mobile mining equipment populations globally for trucks, loaders, graders, dozers, excavators and shovels. This report includes informative breakdowns by each major region and key mining country, and also by major commodity. Read GlobalData’s Global Surface and Underground Mining Equipment: Populations & Forecast to 2025 for a complete view of the market, allowing you to best position yourself for the future.
by GlobalData
Enter your details here to receive your free Report.

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