Newmont extends Yandal bond offer

Vancouver With 98.7% of the April 2008 notes issued to its Australian subsidiary in hand, Newmont Mining (NEM-N) has extended the tender offer for the rest of the 8 7/8% bonds until July 18, 2003.

The major recently placed its Australian subsidiary, Newmont Yandal Operations Pty into voluntary administration following a failed attempt to obtain to buy back some US$237 million in creditors’ claims and US$202 million in hedge-book liabilities.

Newmont originally tabled the tender offer on March 27, setting a 1-week deadline to accept US50 on the dollar for its outstanding liabilities, for a maximum cash outlay of US$229 million.

The major is now making an offer to bring Yandal out of voluntary administration by valuing its assets at US$200 million, which could leave Yandal’s third-party noteholders and hedge counter parties with no more than US$0.40 on the dollar. So far, tenders totalling US$233.2 million have been received.

Newmont inherited the liabilities of Yandal when it acquired Australian-based Normandy Mining.

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