Gold Fields and Fujian Zijin Mining Industry Co. Limited Announce Strategic Partnership
December 22 2003 - 10:00PM
PR Newswire (US)
Gold Fields and Fujian Zijin Mining Industry Co. Limited Announce
Strategic Partnership HONG KONG, Dec. 22 /PRNewswire-FirstCall/ --
Gold Fields Limited, through its offshore, wholly-owned subsidiary
Orogen Holdings (BVI) Limited ("Gold Fields"), and Fujian Zijin
Mining Industry Co. Limited ("ZIJIN") are pleased to announce a
strategic partnership which will see Gold Fields' purchase of a
total of US$7.73 million of shares in ZIJIN in the Initial Public
Offering (IPO) of ZIJIN on the Hong Kong Stock Exchange ("HKSE")
and establishment of a joint venture to explore for and develop
gold properties in the Fujian Province of the People's Republic of
China ("PRC"). This purchase represents approximately 18 million
shares out of 318 million issued, or roughly 5.7% of the float of
27% of the company. Gold Fields was the largest single purchaser of
shares in the IPO. Gold Fields and ZIJIN will establish a
Sino-Foreign Joint Venture to acquire, explore for and develop gold
properties in Fujian Province, PRC. Equity in the JV will initially
be Gold Fields 60% and ZIJIN 40%. Gold Fields will invest the first
US$0.5 million in exploration expenditure and ZIJIN will contribute
Exploration Licences, data, local knowledge, and facilitate further
tenement acquisition. Following Gold Fields' initial period of sole
funding exploration expenditure, both parties will contribute
according to their equity positions. Both parties recognise their
strength and leading positions in the gold mining industry,
internationally, and in the PRC and intend to broaden the
partnership to the mutual benefit of both companies. ZIJIN is one
of China's largest gold producers, which has been growing rapidly
in recent years. The principal asset of ZIJIN is the Zijinshan Gold
Mine located in Fujian Province, which is the largest producing
gold mine in the PRC. The company has interests in a number of
other gold and base metal projects throughout China, ranging from
grass roots exploration to operating stage, including the
Shuiyindong Gold Mine in Guizhou, and the Ashele Cu-Zn project in
Xinjiang Uyghur Autonomous Region. The Company, which employs 1,035
people nationwide, produces more than 300,000 ounces of gold
annually. ZIJIN is listed on the HKSE under the code 2899. Gold
Fields is one of the world's largest gold producers, operating in
three key gold mining countries, South Africa, Ghana and Australia.
The company, which employs 48,000 people worldwide, produces more
than 4 million ounces of gold annually. Gold Fields is listed on
the JSE Securities Exchange and the London Stock Exchange, among
others and its American Depository Shares are listed on the New
York Stock Exchange under the symbol GFI. FORWARD-LOOKING STATEMENT
The statements herein that are not historical facts are
forward-looking statements. These statements address future events
and conditions and so involve inherent risks and uncertainties.
Actual results could differ from those currently projected.
DATASOURCE: Gold Fields Limited CONTACT: Tommy McKeith, Director of
Gold Fields Australasia Pty Ltd, +61 (08) 9211 9200, or fax, +61
(08) 9226 3477; or Chen Jinghe, Chairman of Fujian Zijin Mining
Industry Co. Limited, +86 (0597) 384 2888, or fax, +86 (0597) 388
3997 Web site: http://www.zjky.com.cn/ http://www.gold-fields.com/
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