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Newcrest to divest Bonikro gold project stake for A$81M

Newcrest Mining Ltd. said Dec. 13 that following a strategic review on the asset, it agreed to sell its 89.89% interest in the Bonikro gold project in Ivory Coast to a consortium of F&M Gold Resources and Africa Finance Corp. for A$81 million.

The consideration comprises A$72 million in cash, payable on the completion of the transaction, part of which is contingent on the successful progression of the property's Akissi-so pit extension and A$9 million as net smelter royalty on future ore mined at Bonikro. The company expects to recognize a small net profit on the sale.

The economic effective date for the transaction will be Oct. 1. Output from Bonikro until the completion of the transaction, which is expected within the March 2018 quarter, will be included in Newcrest's production results, but the economic interest for the period after Oct. 1 will be to the benefit of the acquiring consortium.

Newcrest will update its fiscal 2018 guidance after the deal's closing. The company also said it will retain its exploration tenements within Ivory Coast that are outside the area covered by Bonikro, including the Seguela project where drilling is underway at the Antenna prospect to confirm the extent of discovered mineralization.