Gold Fields Sells Its 51% Stake in Peru's Chucapaca Project to Buenaventura

JOHANNESBURG, Aug. 19, 2014 /CNW/ - 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

SOURCE Gold Fields Limited



More by this Source


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

 

PR Newswire Membership

Fill out a PR Newswire membership form or contact us at (888) 776-0942.

Learn about PR Newswire services

Request more information about PR Newswire products and services or call us at (888) 776-0942.