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Published on Gold Anti-Trust Action Committee (http://gata.org)

Murphy''s ''Midas'' commentary posted at GoldSeek

By cpowell
Created 2003-07-03 07:00

3:26a ET Thursday, July 3, 2003

Dear Friend of GATA and Gold:

The Newmont press release appended here, issued in
the middle of the night U.S. time, suggests that the
company has not gotten concessions from the bullion
bankers of its Yandal division and so is putting
Yandal into a reorganization process by which the
banks might receive even less repayment than Newmont
had offered. We'll have to await more expert analysis
than this but maybe the war is on.

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.

* * *

Newmont Yandal Operations Placed Into
Voluntary Administration and Note Offer Extended

Company press release
3a ET Thursday, July 3, 2003

http://biz.yahoo.com/prnews/030703/lath019_1.html [1]

DENVER, July 3 -- Newmont Mining Corp. today announced
that the board of directors of its Australian subsidiary,
Newmont Yandal Operations Pty Ltd (Yandal), resolved to
place the company into voluntary administration (a form
of insolvency proceeding) in Australia as it is insolvent
or likely to become insolvent.

Thomas Mahoney, Vice President and Treasurer for Newmont,
commented: "We are very disappointed that we were not able
to get 100% acceptance of our offers to acquire the claims of
Yandal's creditors. We have received acceptances from hedge
counterparties representing 76% of Yandal's negative
mark-to-market liability as of May 22, 2003, and Note holders
representing 83% of the 8 7/8% Senior Notes due April 2008
not already owned by a Newmont subsidiary. We are optimistic
that the voluntary administration process will be completed in
an expeditious manner."

In conjunction with the voluntary administration process,
Newmont or a subsidiary is making an offer to the administrator
for Yandal that, if accepted, would bring the company out of
voluntary administration. The offer will effectively value the
assets at US$200 million and may result in Yandal's outstanding
third-party Note holders and hedge counterparty receiving not
more than $0.40 on the dollar. If Newmont's offer is accepted,
Yandal would be returned to the control of its directors and
employees would continue their employment as usual. In
addition, Newmont will honor any prior unpaid obligations to
Yandal's employees and offer trade creditors payment in full.
The Newmont offer will require Yandal to enter into a Deed of
Company Arrangement at a meeting of creditors to be held
within one month.

In order to comply with applicable requirements and to allow
Note holders more time to assess these material developments,
Newmont's subsidiary, Yandal Bond Company Limited (YBCL),
has extended the consent payment deadline and the expiration
of the offer to acquire the Notes to 5:00 p.m., New York City
time, on Friday, July 11, 2003, with respect to Notes not
previously tendered.

Citigroup Global Markets Inc. is the dealer manager and Mellon
Investor Services LLC is the depositary and information agent
for the tender offer and consent solicitation. Note holders'
requests for documentation should be directed to Mellon
Investor Services at (917) 320-6286 (for banks and brokers)
or toll-free (800) 392-5792. Questions regarding the transaction
should be directed to Citigroup Global Markets Inc. at (800)
558-3745.

YBCL has previously purchased and paid for the $196.8 million
aggregate principal amount of the Notes tendered on or before
June 26, 2003. YBCL has been advised by Mellon Investor
Services LLC, the depositary for the Note offer, that as of July
2, 2003, no additional Notes have been tendered since June 26,
2003. Yandal, its subsidiaries who have guaranteed the Notes
and the trustee under the Indenture have executed a
supplemental indenture implementing the amendments to the
Indenture consented to by the Note holders who have tendered
the Notes already purchased by YBCL.

The offer to purchase Notes and consent solicitation are
being made solely by the Offer to Purchase and Consent
Solicitation Statement dated May 29, 2003 and the related
Letter of Transmittal and Consent, as they have been and may
be supplemented or amended, which set forth the complete
terms of the tender offer and consent solicitation.

Newmont, based in Denver, is the world's premier gold mining
company and the largest gold producer with significant assets
on five continents.


Source URL:
http://gata.org/node/1892