Newmont enlarges consent fee by 10x, extends solicitation another day

By Wendy Van Sickle

Columbus, Ohio, April 12 – Newmont Mining Corp. increased the consent fee and extended the deadline of its solicitation of holder consents to make some changes to the indenture governing its $600 million 5.875% notes due 2035, according to a Friday news release.

The consent fee will now be $10 per $1,000 principal amount, up from $1 per $1,000 of notes previously.

The solicitation will now expire at 5 p.m. ET on April 12.

The consent solicitation had been set to end at 5 p.m. ET on April 11, after having been previously extended from an original expiry of 5 p.m. ET on April 10.

The solicitation was announced on April 4.

Holders who have already delivered consents need not take any additional action.

The record date is 5 p.m. ET on April 3.

The notes are guaranteed by Newmont USA Ltd.

On March 10, Newmont entered into the implementation agreement to establish a joint venture with Barrick Gold Corp. to realize anticipated synergies and cost savings from the combination of their respective Nevada operations.

Under the agreement, Newmont has agreed to cause Newmont USA to sell, assign and transfer to the joint venture entity its assets, properties and rights in Nevada. It is expected that Newmont USA will hold an economic interest of 38.5% in the joint venture entity and in any assets, properties and rights transferred to the joint venture entity.

Newmont is soliciting consents to conform the provisions of the guarantor merger covenant in the indenture to the corresponding provisions in the indenture governing the other series of notes issued by Newmont and to add to, amend, supplement or change terms related to the foregoing.

The effectiveness of the consent solicitation is not a condition to the consummation of the transactions contemplated by the Nevada agreement.

For passage, holders of a majority of the notes must deliver their consents.

Citigroup Global Markets Inc. (212 723-6106 and 800 558-3745) is the solicitation agent. Global Bondholder Services Corp. (866 807-2200 or 212 430-3774) is the information and tabulation agent.

The issuer is a gold and copper producer based in Denver.

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