Newmont looks to raise $1bn with note offering

Leading gold producer Newmont Mining is looking to raise $1 billion from an offering of convertible senior notes in order to help fund projects.

The money raised will go towards gold projects such as the Boddington gold mine in Western Australia.

It is thought the redeveloped Australian mine, due to go into production in late 2008, will cost around A$2 billion, and will produce up to one million ounces of gold per year.

The money gained from the senior notes will also help development at the Yanacocha gold mill in Peru, and potential development in the future at Conga in Peru, Akyem in Ghana, and other locations.

A statement from the miner read: "The company intends to issue convertible senior notes due 2014 and 2017, each in the principal amount of $500 million, through an offering to qualified institutional buyers under Rule 144A of the Securities Act.

"Upon conversion, holders will be entitled to receive cash for that portion of the value of the common stock into which the notes are convertible up to the principal amount of the notes, and excess conversion value, if any, will be satisfied at the company's election in cash, common stock or a combination of cash and common stock."