Gold Fields Sells 60% Stake in Essakane Project for US$200 Million and Acquires 12.2% Interest in Orezone Resources Inc.
November 27 2007 - 2:40AM
PR Newswire (US)
JOHANNESBURG, South Africa, November 27 /PRNewswire-FirstCall/ --
Gold Fields Limited ("Gold Fields") (NYSE, JSE, DIFX: GFI) is
pleased to announce the successful closing of the transaction
announced on 10 October 2007, as a result of which Gold Fields sold
its 60% stake in the Essakane Project located in Burkina Faso, West
Africa to its partner in the project, Orezone Resources Inc.
("Orezone") (TSX:OZN), for a minimum total consideration of US$200
million. Orezone paid Gold Fields US$150 million in cash and issued
41,666,667 common shares having an aggregate subscription price of
US$50 million to its wholly-owned subsidiary Gold Fields Essakane
(BVI) Limited ("Gold Fields Essakane"). Following the acquisition,
Gold Fields owns 41,666,667 common shares of Orezone, representing
12.2% of Orezone's issued and outstanding common shares. Gold
Fields acquired the common shares of Orezone for investment
purposes and has no present intention of acquiring ownership of, or
control over, additional securities of Orezone. The Essakane
Project is a late stage development project located in Burkina
Faso, West Africa. A bankable feasibility study was recently
completed which envisioned a surface mine/CIL operation processing
an average of 5,400,000 tonnes per annum. The project has an
indicated and inferred resource of 3.8 million ounces of gold at a
1.0 g/t cutoff and a contained reserve of 2.65 million ounces. The
project will take 18 months to construct at a total capital cost of
US$346 million, and first gold is expected to be poured by early
2010. Once operational, the mine will produce an average of 292,000
ounces of gold per annum. Orezone is an explorer and emerging gold
producer with a pipeline of advanced and grassroots projects in
politically stable areas of West Africa. West Africa is one of the
world's fastest growing gold producing regions. Gold Fields Limited
is one of the world's largest unhedged producers of gold with
attributable production of 4.0 million ounces per annum, mineral
reserves of 94 million ounces and mineral resources of 252 million
ounces. The Group employs some 47,000 permanent employees across
its operations and is listed on the JSE Limited South Africa
(primary listing), the New York Stock Exchange (NYSE) and the Dubai
International Financial Exchange (DIFX). DATASOURCE: Gold Fields
Limited CONTACT: Enquires: South Africa, Nerina Bodasing, Tel:
+27-11-644-2630, Fax: +27-11-484-0639,
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