JOHANNESBURG, August 19, 2014 /PRNewswire/ --
Gold Fields Limited (Gold Fields) (JSE, NYSE, NASDAQ Dubai: GFI)
has agreed to sell its 51% stake in Canteras del Hallazgo S.A.C
(CDH), the company that manages the Chucapaca project in southern
Peru, to its joint venture partner
in the project, Compañía de Minas Buenaventura S.A.A.
(Buenaventura). Buenaventura is Peru's largest publicly traded, precious
metals mining company and previously owned 49% in CDH.
The agreed sale price is US$81-million, to be paid by Buenaventura
concurrently with the execution of the agreement, and a 1.5% net
smelter royalty on future sales of gold, copper and silver produced
in the current Chucapaca concession.
Nick Holland, CEO of Gold Fields,
said: "We are pleased to have agreed terms with Buenaventura to
sell our controlling stake in Chucapaca. The royalty agreement
provides us with future upside, as we see Buenaventura, with its
local expertise and experience, advancing this project fairly
quickly."
At end-December 2013 Chucapaca had
gold Mineral Resources of 6.1 million ounces.
The acquisition price of US$81-million and the royalty deal ensure Gold
Fields' investments in the project are recouped. The acquisition
price equates to US$26,20 per
attributable gold resource ounce, which is in line with weighted
average enterprise values of open-pit projects globally.
Mr Holland added: "The sale of our stake is in line with our
strategy of focusing on growing cash flow and moving away from
greenfields exploration and new project development as a strategy
for growth, in favour of the acquisition of in-production ounces
and near-mine exploration and development."
In June Gold Fields announced
that it had sold its 85% interest in the Yanfolila project in
Mali to London-listed Hummingbird Resources for
US$20-million in the form of
Hummingbird shares. Earlier this year it also disposed of its
interest in the Talas project in Kyrgyzstan.
Roque Benavides, Chairman and CEO
of Buenaventura, stated: "Chucapaca, as an underground mining
project located in Peru, offers an
important potential to continue growing in terms of gold resources
and future production. This acquisition fits perfectly with
Buenaventura's expertise to develop underground mining operations
that will permit the maximization of shareholders' value, adding
precious metal resources to our portfolio."
Notes to editors
About Gold Fields
Gold Fields Limited is an unhedged, globally diversified
producer of gold with eight operating mines in Australia, Ghana, Peru
and South Africa. In February 2013, Gold Fields unbundled its mature,
underground KDC and Beatrix mines in South Africa into an independent and
separately listed company, Sibanye Gold. In October 2013, it expanded its presence in
Western Australia by acquiring the
Granny Smith, Lawlers and Darlot mines (known as the Yilgarn South
Assets) from Barrick
Gold.
Gold Fields has attributable annual gold production of
approximately 2.02 million ounces, as well as attributable Mineral
Reserves of around 49 million ounces and Mineral Resources of about
113 million ounces. Attributable copper Mineral Reserves total 708
million pounds and Mineral Resources 7,120 million pounds. Gold
Fields has a primary listing on the JSE Limited, with secondary
listings on the New York Stock Exchange (NYSE), NASDAQ Dubai
Limited, Euronext in Brussels
(NYX) and the Swiss Exchange (SWX).
Sponsor: J.P. Morgan Equities South Africa (Pty) Ltd
Enquiries
Investors
Willie Jacobsz
Mobile: +27-82-971-9238 (SA)
email: Willie.Jacobsz@goldfields.co.za
Media
Sven Lunsche
Tel: +27-11-562-9763
Mobile: +27-83-260-9279
email: Sven.Lunsche@goldfields.co.za
SOURCE Gold Fields Limited