Newmont shareholders give the nod

Newmont Mining (NEM-N) shareholders have voted overwhelmingly in favour of the company’s acquisitions of Australia’s Normandy Mining (NDY-T) and Toronto-based Franco-Nevada Mining (FN-T).

Denver-based Newmont also said that earlier this week it had received approval under the Investment Canada Act for its acquisition of Franco-Nevada and approval from the Australian Stock Exchange for the admission of Newmont to the exchange’s Official List and the quotation of Newmont CDIs, depository receipts for debt-type securities either foreign or Australian, tradable on ASX system.

Newmont won a heated battle with South Africa’s AngloGold (AU-N) over Normandy earlier this year, with an offer of A50 and 0.0385 of a share for every Normandy share. Newmont’s bid also included a bid for Franco, which is conditional on a 50.1% acceptance level by Normandy shareholders. Under that deal, Franco shareholders are offered 0.8 of a share per Franco-Nevada share.

Newmont says it currently has about 27% of Normandy’s shares on a fully diluted basis. The company plans to pay all shareholders accepting its offer by 7 P.M. Sydney time on Feb. 15, by the end of trading on the ASX on Feb. 20.

The Franco acquisition, if it goes ahead, is scheduled to close on Feb. 16. Franco shareholders voted 98.74% in favour of the merger on Jan. 30.

At the end of the day, Newmont’s current shareholders will own 50% of the new Newmont, Franco-Nevada shareholders, 32%, and Normandy shareholders, 18%. Headquartered and listed in Australia, the post-merger, Newmont will produce more than 8 million oz. annually at a cash cost of about US$175 per oz., the lowest costs next to peers Placer Dome (PDG-T) and Barrick Gold (ABX-T).