The Ghanaian government has granted regulatory approval for the completion of Gold Fields’ joint venture (JV) with Canada-based Asanko Gold.
Gold Fields and Asanko announced in March that the JSE-listed major would buy a 45% interest in the Asanko gold mine (AGM), in Ghana, for $185-million.
Asanko will retain a 45% interest in the mine, while the Ghanaian government holds a 10% free-carried interest.
As part of the transaction, Gold Fields will also buy a 9.9% shareholding in Asanko for $17.6-million.
The Ghanaian government’s regulatory approval was the principal condition to closing the joint venture (JV) and Gold Fields expects the transaction to be completed in early July.
The acquisition will be funded from cash and/or by drawing down on existing debt facilities.
Gold Fields has previously stated the JV would provide it with immediate access to low-cost production ounces.
The mine is forecast to produce about 253 000 oz/y between 2019 and 2023, at all-in sustaining costs of $860/oz.
AGM comprises two main deposits, namely Nkran, which is the main ore source that is currently being mined, and Esaase. These deposits form part of a fairly well-defined series of structures which was unexplored in many areas of the property, which spans about 540 km2.