Moydow to sell Ghana stake to Newmont

TORONTO, March 24 (Reuters) - Moydow Mines International Inc. said on Monday it had agreed to sell its 50 percent stake in the Ntotoroso property in Ghana to Newmont Mining Corp. for $20 million.

Moydow said it will have the option of receiving the payment as $2 million in cash and the balance in Newmont stock. The price of the stock will be determined three days before the deal closes, but will be between $24.50 and $25.50 a share.

Moydow said it will also receive a 2 percent net smelter return royalty on all gold and silver production from the property that exceeds the current reserve of 1.2 million ounces.

The company said the sale would be completed as soon as possible, pending regulatory and corporate approvals.

Moydow shares, which were halted on the Toronto Stock Exchange on Monday, closed unchanged at 88 Canadian cents.