Mvela Resources and Gold Fields Agree on 50 Million Shares Should "Flip-up" Proceed
March 17 2008 - 2:45AM
PR Newswire (US)
JOHANNESBURG, March 17 /PRNewswire-FirstCall/ -- Gold Fields
Limited (Gold Fields) (JSE, NYSE and DFIX: GFI) and Mvelaphanda
Resources Limited (Mvela Resources) (JSE:MVL) are pleased to
announce that the parties have agreed that Mvela Resources will
receive 50 million Gold Fields shares if and when Mvela Resources'
future stake of 15% in GFI Mining South Africa (Proprietary)
Limited (GFIMSA) Limited is exchanged at the instance of either
Gold fields or Mvela Resources, for shares in Gold Fields. GFIMSA
is the vehicle that owns and houses the South African assets of
Gold Fields. The exact number of shares, within the range of the
floor and cap (45 and 55 million shares respectively), which Mvela
Resources would have received should the exchange have been
implemented in terms of current agreements, was extremely volatile
because of the input parameters for a Discounted Cash Flow
valuation, and the complex nature of the formula, and agreeing the
number of shares now gives certainty on an equitable basis to both
parties. Nick Holland, Chief Financial Officer of Gold Fields said:
"We agreed on 50 million shares as it is the midway point between
the floor and cap, and we believe represents a fair deal." Pine
Pienaar of Mvela Resources said: "This arrangement will bring
certainty to the shareholders of Mvela Resources as to the size of
our potential future stake in Gold Fields." DATASOURCE: Gold Fields
Limited & Mvelaphanda Resources Limited CONTACT: Enquiries:
Gold Fields, Investors: Willie Jacobsz, Mobile Number:
+27-82-493-1377; Media: Reidwaan Wookay, Office Number:
+27-11-644-2665, Mobile Number: +27-82-878-4566; Andrew Davidson,
Office Number: +27-11-644-2638, Mobile Number: +27-82-667-7203;
Mvelaphanda Resources, James Wellsted, +27-11-325-5323,
+27-83-453-4014
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