To view the PDF file, sign up for a MySharenet subscription.

GOLD FIELDS LIMITED - Gold Fields sells its 51% stake in Perus Chucapaca project to Buenaventura

Release Date: 19/08/2014 07:59
Code(s): GFI     PDF:  
Wrap Text
Gold Fields sells its 51% stake in Peru’s Chucapaca project to Buenaventura

Gold Fields Limited
(Reg. No. 1968/004880/06)
(Incorporated in the Republic of South Africa)
(“Gold Fields” or “the Company”)
JSE, NYSE, DIFX Share Code: GFI
ISIN Code: ZAE000018123


MEDIA RELEASE


Gold Fields sells its 51% stake in Peru’s Chucapaca project to Buenaventura


Johannesburg, 19 August 2014: 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.”



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




Sponsor: J.P. Morgan Equities South Africa (Pty) Ltd




ends

Date: 19/08/2014 07:59:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
 the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, 
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
 information disseminated through SENS.

Share This Story