Newmont Mining agrees to acquire Miramar Mining for C$1.5 bln

Newmont Mining Corp. (NEM), a gold company, has announced that it agreed to acquire all the outstanding common shares of Miramar Mining Corp. for C$6.25 cash per common share, in a transaction that values Miramar at nearly C$1.5 billion on a fully diluted basis. The Denver, Colorado-based Newmont Mining stated that its offer represents a premium of approximately 29% over Miramar’s 20-day volume-weighted average trading price on the TSX through October 5, 2007.

The acquisition of the Canadian gold company Miramar, which has been developing the Hope Bay Project since 2005, will enable Newmont to establish a new, core mining district in the Nunavut Territory of Canada. This will allow Newmont to control and explore a roughly 80 by 20 km greenstone belt with substantial exploration potential, located in a AAA-rated country.

The board of directors of Miramar has unanimously determined that the offer to be made by Newmont is fair and that it will recommend that shareholders tender to the offer. All the directors and senior officers of Miramar have entered into written agreements to accept Newmont’s offer and to tender their shares to the takeover bid.