Newmont Announces Acquisition of Shares and Warrants of Loncor Resources Inc.


    



    
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<p><span class="xn-location">DENVER</span>, <span class="xn-chron">Dec. 15, 2010</span> /CNW/ -- Newmont Mining Corporation (NYSE:  NEM) ("Newmont") announced today that its subsidiary, Newmont Mining Corporation of <span class="xn-location">Canada</span> Limited ("Newmont <span class="xn-location">Canada</span>"), acquired 2,000,000 units ("Units") of Loncor Resources Inc. ("Loncor") by way of private placement at a price of Cdn <span class="xn-money">$1.95</span> per Unit for aggregate gross proceeds to Loncor of Cdn. <span class="xn-money">$3,900,000</span>.  Each Unit is comprised of one common share of Loncor ("Common Share") and one-half of one Common Share purchase warrant ("Warrant") exercisable for one additional Common Share at a price of Cdn. <span class="xn-money">$2.30</span> for a period of two years. Newmont also announced that Newmont <span class="xn-location">Canada</span> has exercised the existing 2,000,000 warrants of Loncor that it holds to acquire 2,000,000 Common Shares at a price of Cdn. <span class="xn-money">$1.45</span> per share.</p>
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<p>After giving effect to the exercise of all Warrants and assuming no other security holder converts its convertible securities, Newmont <span class="xn-location">Canada</span> would beneficially own and control approximately 9,000,000 Common Shares, representing approximately 18.59% of the Common Shares (calculated based on 48,417,745 outstanding Common Shares, including the Common Shares issuable upon exercise of the Warrants).</p>
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<p>The Common Shares and Warrants were issued pursuant to the terms of a subscription agreement and reliance is made upon the exemption noted in Section 2.3 of National Instrument 45-106 - Prospectus and Registration Exemptions.</p>
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<p>Newmont acquired its securities in Loncor for investment purposes.  In the future, Newmont and its affiliates may increase (through the exercise of the Warrants or otherwise) or decrease their ownership in the securities of Loncor depending on the business, Loncor's prospects, market conditions and Newmont's priorities.</p>
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<p>Further information (including a copy of the report to be filed with Canadian securities regulators in connection with this transaction) can be obtained by contacting:</p>
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    Newmont Mining Corporation
    6363 Fiddlers Green Circle
    Greenwood Village, CO 80111
    United States




    

For further information: For further information: Investors, John Seaberg, +1-303-837-5743, john.seaberg@newmont.com; or Media, Omar Jabara, +1-303-837-5114, omar.jabara@newmont.com, both of Newmont Mining Corporation Web Site: http://www.newmont.com


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