Newmont lowers Yandal offer (July 14, 2003)

Vancouver — Newmont Mining (NEM-N) has placed its Australian subsidiary, Newmont Yandal Operations, under voluntary administration.

The move follows a failed attempt to buy back some US$237 million in creditors’ claims and US$202 million in hedge-book liabilities. At presstime, the major had received acceptances for US$197 million of the notes and US$156 million of the hedge liabilities.

Newmont tabled the offer in late March, setting a 1-week deadline to accept US50 on the dollar for its outstanding liabilities, for a maximum cash outlay of US$229 million.

“We are disappointed that we were not able to get 100% acceptances of our offers to acquire the claims of the Yandal creditors,” says Newmont Vice-President Thomas Mahoney.

The company is now offering to bring Yandal out of voluntary administration by valuing its assets at US$200 million, which could leave Yandal’s third-party noteholders and hedge counter-parties with no more than US40 on the dollar.

Newmont inherited the liabilities of Yandal when it acquired Australian-based Normandy Mining.