Newmont Mining has completed its previously announced acquisition of the Cripple Creek & Victor (CC&V) gold mine in Colorado, US, from AngloGold Ashanti in a deal worth $820m, in addition to a 2.5% net smelter return royalty.
South Africa-based AngloGold Ashanti originally announced the sale on 8 June.
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By GlobalDataNewmont Mining president and chief executive officer Gary Goldberg said: "CC&V is a value accretive acquisition that adds profitable production and free cash-flow while improving our portfolio mine life and costs in a favourable jurisdiction.
"Consistent with what we’ve achieved at our other operations, we believe we can lower CC&V’s direct mining costs by up to 10% through mine plan optimisation, and improve mill recoveries by up to 2% by applying proprietary technology."
The mine is currently undergoing an expansion as part of which a new mill will be added to improve production, recovery on higher grade ore besides adding capacity for a potential underground operation.
Full production capacity from the mill is expected later this year.
The expansion also features a second leach facility and a new recovery plant, which are expected to be in production in the second half of 2016.
Newmont hopes to fund remaining development capital through operating cash flow.
CC&V will add between 350,000oz and 400,000oz of gold per annum for 2016 and 2017, boosting the reserve base.
Operational since 1995, the surface mine is located near Colorado Springs in Teller County and provides ore to a crusher and a leach facility.
Image: Cripple Creek & Victor open-pit gold mine, north of Victor, Colorado in US. Photo: courtesy of Plazak.