JOHANNESBURG, March 22, 2012 /PRNewswire/ --
Gold Fields Limited (Gold Fields) (JSE, NYSE, NASDAQ Dubai: GFI)
is pleased to announce that it has exercised its 40% option in the
gold-copper Far Southeast Project in the
Philippines after making a US$110-million payment this week.
On 20 September 2010 Gold Fields
entered into two option agreements with Lepanto Consolidated Mining
Company (Lepanto), 60% owner of Far Southeast, and Liberty Express
Assets (Liberty), 40% owner of Far Southeast, granting Gold Fields
an option to acquire a 60% interest in Far Southeast for a total
consideration of US$340-million.
After making two down-payments of US$44-million and US$66-million in September
2010 and September 2011
respectively, Gold Fields has decided to bring forward half of the
remaining US$220-million payment to
acquire Liberty's 40% interest in Far Southeast.
Gold Fields continues to hold its option to acquire an
additional 20% stake in Far Southeast from Lepanto for a further
US$110-million, which, if exercised,
would increase its total interest in Far Southeast to 60%.
The Liberty and Lepanto options were initially granted to Gold
Fields for the later of 18 months from signature in September 2010 or the date of receiving a
Financial or Technical Assistance Agreement (FTAA) for the project.
A FTAA licence allows a foreign corporation to control a majority
interest in a Philippine mining project.
Notwithstanding this provision, Gold Fields has the discretion
to exercise either option prior to the FTAA being granted.
Gold Fields has decided to exercise the Liberty option
earlier than originally planned due to the fact that:
- The due diligence results to date are positive and demonstrate
significant upside to the resource potential;
- By acquiring ownership of 40% it demonstrates its commitment to
the project and formalises its partnership with Lepanto; and
- The early exercise of the Liberty option does not affect the
remaining 20% Lepanto option, which continues to be exercisable in
accordance with the terms of the agreement.
The FTAA application for the Far Southeast project was filed in
November 2011 and based on the date
of the filing Gold Fields expects it could be granted in the second
half of 2012. Gold Fields also expects to have a maiden Resource
statement for Far Southeast and commence a pre-feasibility study
later this year.
Nick Holland, Gold Fields CEO,
commented: "We are extremely pleased that we now own a 40% interest
in Far Southeast, not just an option. The positive drilling results
have given us the confidence to show our commitment to the project
and the Philippines."
Far Southeast is located in the northern part of Luzon, the
largest island in the Philippines.
The project is situated in an existing mining camp in close
proximity to two other mines historically operated by Lepanto, one
of which is currently in production. Far Southeast has ready access
to established infrastructure, including roads, tailings
facilities, power and water. The existing workforce on the doorstep
of Far Southeast is part of a community established around mining
over the past 70 years.
Notes to editors
About Gold Fields
Gold Fields is one of the world's largest unhedged producers of
gold with attributable annualised production of 3.5 million gold
equivalent ounces from eight operating mines in Australia, Ghana, Peru
and South Africa. Gold Fields also
has an extensive and diverse global growth pipeline with four major
projects in resource development and feasibility, with construction
decisions expected in the next 12 to 36 months. Gold Fields
has total attributable gold equivalent Mineral Reserves of 80.6
million ounces and Mineral Resources of 217 million ounces. Gold
Fields is listed on the JSE Limited (primary listing), the New York
Stock Exchange (NYSE), NASDAQ Dubai Limited, Euronext in
Brussels (NYX) and the Swiss
Exchange (SWX).
Sponsor: J.P. Morgan Equities
Limited
Gold Fields Limited
Reg. 1968/004880/06
150 Helen Road,
Sandown, Sandton,
2196
Postnet Suite 252
Private Bag X30500
Houghton, 2041
South Africa
Tel +27-11-5629700
Fax +27-11-5629838
http://www.goldfields.co.za
Enquiries
Investor Enquiries
Zakira Amra
Tel +27-11-5629775
Mobile +27-79-694-0267
email Zakira.Amra@goldfields.co.za
Willie Jacobsz
Tel +1-508-8391188
Mobile +1-857-2417127
email Willie.Jacobsz@gfexpl.com
Media Enquiries
Sven Lunsche
Tel +27-11-5629763
Mobile +27-83-2609279
email Sven.Lunsche@goldfields.co.za
SOURCE Gold Fields Limited