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Newcrest sells part stake in Indo mine

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SYDNEY, Nov 30 AAP

November 30 2012, 6:52PM

Indonesian miner PT Antam is to acquire a further 7.5 per cent interest in that nation's Gosowong gold mine from Newcrest Mining for $US160 million ($A154 million).

The two miners said the move expanded their long-standing, 18-year partnership.

Newcrest will receive consideration of $US160 million, comprising $US130 million ($A125.2 million) cash on completion of the transaction.

A further $US30 million ($A28.89 million) will be paid to Newcrest, subject to a further one million ounces of additional gold resource being defined by December 2017 at the mine.

Completion of the transaction is subject the necessary regulatory approvals in Indonesia.

Following completion of the sale, Newcrest will hold 75 per cent of the joint-venture vehicle that holds the contract for the mine, PT Nusa Halmahera Minerals, and Antam will hold the remaining 25 per cent interest.