Newmont takes strategic stake in Continental Gold

In what will be Newmont Mining’s (NYSE: NEM) first investment in Colombia, the gold and copper producer is plunking down US$109 million for a 19.9% stake in Continental Gold (TSX: CNL) to get a piece of the junior’s high grade, fully permitted, Buritica gold project. Newmont’s foray into the South American nation follows the company’s decision in March to get its first toehold in the Yukon, where it is investing an initial US$39.5 million in Goldstrike Resources (TSXV: GSR), a junior that owns the Plateau gold project. Under the deal with Continental Gold, Newmont has agreed to purchase 37.38 million shares in a non-brokered private placement at a price of $4.00 per share – a 46% premium to Continental’s closing share price the day before the investment agreement was announced. Gary Goldberg, Newmont’s president and CEO, stated in a press release that Newmont was “impressed with the quality of the deposit, the caliber of the management team, the community’s support for the project, and the prospects for future growth.” Continue reading at The Northern Miner.