Goldfields completes Western Australia transaction

goldfields 1GIFT NDOLWANE
JOHANNESBURG, (CAJ News) – GOLD Fields has entered into a 50:50 joint venture with
Gold Road Resources Limited (Gold Road) (ASX: GOR) for the development and operation
of the Gruyere Gold Project in Western Australia.

Gold Fields will acquire a 50 perecnt interest in Gruyere for a total purchase
consideration of A$350 million payable in cash and a 1,5 percent royalty on Gold
Fields’ share of production after total mine production exceeds 2 million
ounces(Moz) with an approximate value of $15 million.

The cash consideration will be split, with $250 million payable at completion and
$100 million payable according to an agreed construction cash call schedule.

The consideration will be funded utilising existing cash resources and banking
facilities in Australia.

The Feasibility Study for Gruyere, which was completed in October 2016, indicated
Gruyere’s 3,5Moz reserve (6.2Moz resource) could support average annualised
production of 270koz for a 13-year life of mine (LOM).

“Australia is a key part of our business and our largest cash generator. This deal
enhances our portfolio and expands our exposure to a new and emerging goldfield in
Western Australia,” says Nick Holland, CEO of Gold Fields.
CAJ News

Short URL: http://cajnewsafrica.com/?p=16323

Posted by on Nov 7 2016. Filed under Africa & World, Featured, Mining, Mining & Engineering, National, Regional. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry

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