Arctic Platinum Project Reverts to Gold Fields
September 10 2008 - 6:17AM
PR Newswire (US)
JOHANNESBURG, September 10 /PRNewswire-FirstCall/ -- Gold Fields
Limited ("Gold Fields") (NYSE, JSE, DIFX: GFI) today announced that
the Arctic Platinum Project (APP) in Finland had reverted to Gold
Fields after North American Palladium Limited (NAP), a Canadian
platinum metals group producer, had declined to follow its rights
in terms of a Letter of Intent entered into between the parties and
announced on 18 October 2005 and an Acquisition and Framework
Agreement subsequently entered into between the parties. In terms
of the agreement Gold Fields and NAP formed a joint venture to
further explore mining properties and possibly develop a mine at
Gold Fields' Arctic Platinum Project, located approximately 60
kilometers south of the city of Rovaniemi in northern Finland. Gold
Fields also granted an option to NAP to acquire up to a 60%
undivided interest in the Project. NAP's option to acquire its
interest in APP was subject to NAP undertaking approved expenditure
on the Project of approximately US$12.5 million, and making a
decision to develop a mine at the property, prior to the expiry of
the option period on 31 August 2008. Had NAP satisfied these
conditions and exercised the option, it would have been required to
issue up to approximately 9.2 million NAP common shares to Gold
Fields in consideration for the acquisition of its interest in APP
which, based on the weighted average trading price on the American
Stock Exchange for the eleven trading days commencing on October
11, 2005, would have valued the consideration at approximately
US$45 million. During the option period NAP was the operator of the
project. NAP has informed Gold Fields that it will not follow its
rights in terms of the agreement and therefore the option has
expired and the agreement has been terminated. With effect from 1
September 2008, Gold Fields has therefore again taken full control
and management of APP and will explore ways in which to realize
value for its shareholders from this asset. About Gold Fields Gold
Fields Limited is one of the world's largest unhedged producers of
gold with attributable production of 3.64 million ounces per annum
from eight operating mines in South Africa, Ghana and Australia. A
ninth mine, Cerro Corona Gold/Copper mine in Peru, commenced
production in August 2008 at an initial rate of approximately
375,000 gold equivalent ounces per annum. The company has total
attributable ore reserves of 83 million ounces and mineral
resources of 251 million ounces. Gold Fields is listed on JSE
Limited (primary listing), the New York Stock Exchange (NYSE), the
Dubai International Financial Exchange (DIFX), the Euronext in
Brussels (NYX) and Swiss Exchange (SWX). DATASOURCE: Gold Fields
Limited CONTACT: Enquires: Willie Jacobsz, Tel +1-508-358-0188,
Mobile +1-857-241-7127
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