Newmont lowers Yandal offer (July 03, 2003)

Vancouver Newmont Mining (NEM-N) has placed its Australian subsidiary, Newmont Yandal Operations Pty into voluntary administration.

The move follows a failed attempt to obtain to buy back some US$237 million in creditors’ claims and US$202 million in hedge-book liabilities. As of last Friday, the world’s biggest gold miner had received acceptances for US$197 million of the notes and US$156 million of the hedge liabilities.

Newmont tabled the 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.

“We are very disappointed that that we were not able to get 100% acceptances of our offers to acquire the claims of the Yandal creditors,” says Newmont’s Vice President, Thomas Mahoney.

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.

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