U.S. Miner Newmont To Buy Fronteer Gold

TORONTO (AP) -- U.S. mining giant Newmont Mining Corp. has agreed to buy Canadian mid-tier gold miner Fronteer Gold Inc. in a cash-and-stock deal that values Fronteer at about $2.33 billion.

Newmont is offering $14.17 in cash plus a share in a new company dubbed Pilot Gold that will be spun off from Fronteer's exploration assets.

The deal is expected to be completed by June.

Vancouver-based Fronteer is developing the Long Canyon gold project in Nevada, not far from Newmont's own operations.

The newly formed Pilot Gold will own exploration properties in Nevada, Turkey, and Peru and will get an initial cash injection of $10 million to get started.

Denver-based Newmont said Thursday the acquisition will boost its plans to grow in North America.

(Copyright 2011 by The Associated Press. All Rights Reserved.)