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Gold Fields sells Australian gold mine

Gold Fields CEO Nick Holland

Gold Fields CEO Nick Holland

Photo by Duane Daws

18th August 2017

By: Martin Creamer

Creamer Media Editor

     

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A wholly owned subsidiary of Australian Stock Exchange-listed mining company Red 5 has bought the Darlot gold mine, in Western Australia, from South Africa’s Gold Fields for A$18.5-million.

In the past three years, Darlot produced more than 241 000 oz of gold.

The JSE-listed Gold Fields, headed by CEO Nick Holland, has owned Darlot since 2013, which it bought as part of the acquisition of Barrick Gold’s Yilgarn South assets.

Payment comprises A$12-million in cash plus 130-million Red 5 shares, with the cash component made up of A$7-million in advance and A$5-million deferred for up to 24 months.

Gold Fields may elect to take the deferred amount in additional shares in Red 5 or as cash, the companies said in releases to Mining Weekly earlier this month.

To assist with the funding of the cash component, Red 5 intends to undertake a rights issue which Gold Fields will underwrite up to A$7-million.

Red 5 has also entered into a binding agreement to acquire the King of the Hills gold project from West Australian midtier gold producer Saracen Mineral Holdings.

The acquisitions give Red 5 a presence in Western Australia’s Leonora-Leinster mineral district from which to leverage regional consolidation, with the Darlot mill serving as a central processing hub.

The Red 5 group also owns the Siana gold project, which is on care and maintenance, and Mapawa, located 20 km north of Siana, in the Philippines.

Edited by Martin Zhuwakinyu
Creamer Media Senior Deputy Editor

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