Goldfields to link with Newmont

Press, 29 October 1981, Page 25

Goldfields to link with Newmont

PA London Consolidated Goldfields shareholders yesterday approved their board's request to go ahead with a major investment in the Newmont Mining Corporation. The shareholders approved on a show of hands that Goldfields purchase an interest of up to 49.99 per cent of that corporation.

In pre-vote comments, Consolidated's chairman (Lord Erroll) said that Newmont was a large and independent mining house, the second-largest in the United States.

“The relationship with Newmont is therefore a natural step for us,” the chairman said. “It parallels what we have already done in South Africa and Australia, while greatly expanding our interests in the United States and in a number of important commodities.”

Lord Erroll described Newmont as a significant copper and gold producer, largely in the United States, which had major investments in energy resources.

Yesterday Consolidated Goldfields held 4.1 million Newmont shares, about 16 per cent of the equity. The average share cost $57.92. The new investment of up to 26 per cent of the equity will include one million shares to be issued to Consolidated Goldfields at $72 a share in cash.

Speaking at the annual general meeting before the extraordinary general meeting to vote on the purchase, Lord Erroll detailed the emphasis Consolidated Goldfields was placing on its world wide mining interests. The recent merger of Renison, Mount Lyell, and Associated Minerals with Consolidated Goldfields of Australia had created the basis for a mining house of major importance. he said. “The new company has already made a bid to acquire New Guinea Gold Fields, a gold producer in Papua New Guinea with promising exploration potential.

“Renison Goldfields Consolidated also has an interest in the Porgera gold property

in Papua, although there will clearly be difficult technical and logistical problems to be overcome before that property can be brought to profitable production.” Turning to Consolidated Goldfields’ intentions, Lord Erroll said its policy was to remain as an investor in industrial and commercial businesses which were allied to its main natural resources function.

“In pursuing our strategy towards becoming one of the world’s major natural resources groups, we shall endeavour to build up an asset base which will provide the strength required to make major investment in the natural resources field."

In concluding, Lord Erroll welcomed new directors to the company, two of whom were Mr Max Roberts, chairman and chief executive of Renison Goldfields Consolidated, and Mr George Guise. Mr Guise was particularly responsible for the group’s business in Australia, the chairman said.