06:28 AM EDT, 10/09/2024 (MT Newswires) -- Newmont ( NEM ) said late Tuesday it agreed to offload its Akyem gold operation in Ghana to China's Zijin Mining Group for up to $1 billion in cash, as part of the company's ongoing efforts to divest its non-core assets.

The gold producer expects to receive a cash consideration of $900 million upon the completion of the deal, and an additional $100 million upon the achievement of certain conditions, it said in a statement. Newmont's ( NEM ) shares were down 0.4% in Wednesday's premarket activity.

The transaction, which requires approval from regulators, is expected to complete in the fourth quarter.

Newmont ( NEM ) doesn't expect the deal to have a material impact on its 2024 outlook. The company aims to use the proceeds from the transaction to support its capital allocation objectives, including strengthening its balance sheet and returning capital to shareholders.

"The sale of Akyem represents continued progress on the non-core asset divestiture program announced in February, supporting our focus on the Tier 1 assets in Newmont's ( NEM ) portfolio that will drive sustainable growth and the return of capital to shareholders," Chief Executive Tom Palmer said in the statement. The company announced earlier in the year that it plans to sell six of its non-core assets and two non-core projects.

"We believe the proposed transaction results in the greatest overall value for Newmont ( NEM ) shareholders and is the best strategic fit for Akyem," according to Palmer.

Last month, Newmont ( NEM ) agreed to sell some mining assets in Australia for up to $475 million in cash and equity. The deal, which includes the sale of Newmont's ( NEM ) Telfer operation and its 70% interest in the Havieron gold-copper project, is anticipated to close in the ongoing three-month period.

Newmont ( NEM ) Chief Financial Officer Karyn Ovelmen said during the Denver gold forum Americas conference in September that the company continues to expect about $2 billion in proceeds from its divestiture program, which it aims to complete by the end of the first quarter of 2025.

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