Normandy Mining Limited: Gold Portfolio Rationalisation And Simplification — Sale Of Big Bell

Business Wire, Oct 8, 1999

ADELAIDE, Australia--(BUSINESS WIRE)--Oct. 8, 1999--

(TSE:NDY.) (ME:NDY.) Agreement has been reached to sell the Big Bell Consolidated gold operations, near Cue in the Murchison Province of Western Australia.

The agreement, with New Hampton Goldfields Limited ("New Hampton"), is on a walk-in-walk-out basis and includes all assets relating to the Big Bell gold mine, treatment plant and associated properties. The total consideration, $12 million plus a minimum 50 million New Hampton shares (current market value approximately $17 million), is expected to result in a modest gain on the written-down book value.

The transaction, which also includes Normandy's residual 40 percent interest in two exploration joint ventures with New Hampton on the Hampton Locations, south of Kalgoorlie, is conditional upon approval by New Hampton shareholders.

A major restructure of Big Bell Consolidated has been ongoing for the past six months with operational performance for the September 1999 Quarter (49,789 ounces at a total cash cost of $350 per ounce, unaudited) a marked improvement on the previous year. However, the efficient use of capital dictates a priority resource allocation to properties with superior expansion or development opportunities (Pajingo, Tanami, Wandoo, Yamfo-Sefwi and Perama).

The sale of Big Bell Consolidated continues the process of rationalisation and simplification which has seen ten Normandy mines sold or closed in the past eighteen months -- including, recently, Kaltails and White Devil -- with the focus firmly on building a portfolio of stronger, larger, longer life operations. -0-

Ian G Gould
Group Managing Director

Enquiries concerning this report may be directed to:
C G Jackson - Executive General Manager - Corporate
100 Hutt Street, Adelaide  5000
South Australia, Australia
Telephone:  61 8 8303 1703  Facsimile:  61 8 8303 1994

This announcement and other previous announcements are available at Normandy website: http://www.normandy.com.au