PERTH (miningweekly.com) – South Africa-based gold major Gold Fields has taken a 10% shareholding in ASX-listed joint venture (JV) partner Gold Road Resources.
Gold Road on Friday announced that Gold Fields had acquired some 74.8-million shares in the company, at 86c each, representing a premium of 27% to Gold Road’s closing price on May 18.
The two companies in November last year struck a A$350-million deal to jointly develop the Gruyere gold project, in Western Australia.
Under the JV agreement, Gold Fields acquired a 50% interest in the project for A$350-million in cash, along with a 1.5% net smelter return royalty to be placed on Gold Field’s share of production from the JV tenements, once total gold production exceeds two-million ounces.
The project recently received its final approvals and is on track for completion in the December quarter of 2018. The plant will have capacity to handle 7.5-million tonnes a year of fresh ore, and up to 8.8-million tonnes a year of oxide ore, over a mine life of 13 years.