Newmont Mining Corporation (NYSE:NEM) announced that it has entered into a subscription agreement pursuant to which it purchased 29,213,186 common shares of Orosur Mining Inc. (TSX:OMI) at a price of C$0.091 per common share for total consideration of US$2,000,000.
As quoted in the press release:
Prior to completion of the private placement, Newmont did not own any common shares. Following completion of the private placement, Newmont beneficially owns 29,213,186 common shares, representing approximately 19.9 percent of the issued and outstanding common shares.
Terms of the subscription agreement include Newmont’s right to participate in future equity issuance to maintain its ownership stake in Orosur, and restrictions on Newmont acquiring more than 19.9 percent of Orosur’s outstanding voting securities, each for a period of five years following closing.
Newmont acquired the common shares for investment purposes. Newmont will evaluate its investment in Orosur from time to time and may, based on such evaluation, market conditions and other circumstances, increase or decrease shareholdings as circumstances require, subject to the terms of the subscription agreement.
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