Two Newmonts combine assets, reserves

Denver-based Newmont Mining and 90.1%-owned subsidiary Newmont Gold will combine their assets, gold reserves and operations.

The plan calls for Newmont Mining to move all its operating assets, liabilities and 8.6 million common shares it holds in Newmont Gold into Newmont Gold.

The transaction falls short of a full merger since the shares of both companies will continue to trade on the New York Stock Exchange. However Ronald Cambre, vice-chairman and chief executive officer of both companies, said shares of both should trade at substantially identical prices, as they would both have the same operating results, earnings per share, and dividends.

The plan calls for Newmont Gold to issue new convertible preferred stock which mirrors the terms of Newmont Minings existing convertible preferred stock.

After the transaction, Newmont Mining will have more than 85 million common shares and 2.9 million convertible preferred shares outstanding. Newmont Gold will have more than 96 million common shares and 2.9 million convertible preferred shares outstanding.

Newmont Minings assets will include all of the Newmont Gold convertible preferred shares, more than 85 million common shares in Newmont Gold and a 90.04% fully converted interest in Newmont Golds worldwide activities. Newmont Gold will control all gold operations and all of Newmont Exploration. The combination has yet to be approved by Newmont Golds minority shareholders.