Newmont Mining Corp, which topped Wall Street estimates for quarterly profit, said on Thursday it would acquire a 50 percent stake in a gold project in Western Canada as miners look for new reserves.
Major gold miners are racing to explore, expand and construct new mines as years of belt tightening have left them with diminishing reserves at their existing mines.
Newmont would pay $275 million to Novagold Resources Inc for its stake in the Galore Creek project. The remaining stake is held by Teck Resources Ltd.
“Galore Creek holds the potential to support decades of profitable copper and gold production in a favorable mining jurisdiction,” Newmont Chief Executive Gary Goldberg said in a statement.
According to Teck Resources, an estimated 8 million ounces of gold and 9 billion pounds of copper could be mined at the project.
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