DENVER, Oct. 9, 2012 /CNW/ - Newmont Mining Corporation ("Newmont") announced today that its subsidiary, Newmont Canada FN Holdings ULC ("Newmont Canada"), acquired by private placement 4,850,000 common shares ("Common Shares") of Loncor Resources Inc. ("Loncor") at a price of Cdn.$1.05 per share for an aggregate investment of $5,092,500.
After giving effect to the exercise of warrants ("Warrants") to acquire 1,000,000 Common Shares held by Newmont Canada and assuming no other security holder converts its convertible securities, Newmont Canada would own or control approximately 15,550,000 Common Shares, representing approximately 20.89% of the outstanding Common Shares (calculated based on 74,439,732 outstanding Common Shares, including the Common Shares issuable upon exercise of the Warrants held by Newmont Canada and 9,245,000 Common Shares issued by Loncor pursuant to a concurrent public offering).
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.
Newmont Canada acquired its securities in Loncor for investment purposes. In the future, Newmont Canada 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 and prospects of Loncor as well as market conditions.
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:
Newmont Mining Corporation
6363 Fiddlers Green Circle
Greenwood Village, CO 80111
SOURCE: Newmont Canada Holdings ULC
For further information: