Newmont (TSX: NGT; NYSE: NEM) announced Thursday its acquisition of a 50% interest in the Galore Creek Partnership (GCP) from NovaGold Resources (TSX: NG; NYSE: NG), in collaboration with Teck Resources (TSX: TECK.A, TECK.B; NYSE: TECK), the owner of the remaining stake.
Under the 2018 share purchase agreement with NovaGold, Newmont made staged and contingent payments totalling US$275 million to gain participation in the copper-gold project in northwestern British Columbia.
Newmont made an initial payment of US$100 million, with an additional US$75 million scheduled upon completion of the prefeasibility study or within three years from closing. Another payment of US$25 million will be made upon completing the feasibility study or within five years from closing, with a final contingent payment of US$75 million, subject to a decision to develop the project.
Newmont’s president and CEO, Gary Goldberg, said in a statement that Galore Creek holds the potential to support “decades of profitable copper and gold production” in a favourable mining jurisdiction, in line with its strategy to create long-term value for stakeholders.
He also highlighted the benefits of partnering with Teck, leveraging both organizations' technical, financial, and sustainability strengths to evaluate and refine Galore Creek development plans. Additionally, the partnership aims to build on Teck's established relationships with the Tahltan First Nation and the provincial government.