JOHANNESBURG, September 21, 2011 /PRNewswire/ --
Gold Fields Makes Second US$66 Million Down-Payment Under the Option Agreement to Acquire a 60% Interest in the FSE Gold-Copper Project in the Philippines
Gold Fields Limited (Gold Fields) (JSE, NYSE, NASDAQ Dubai: GFI) has made the second down-payment of US$66 million in terms of the option agreements to acquire a 60% interest in the undeveloped gold-copper Far Southeast (FSE) deposit in the Philippines. The option agreements were entered into with Lepanto Consolidated Mining Company (Lepanto), a company listed in the Philippines, and Liberty Express Assets, a private holding company.
The non-refundable down-payment of US$66 million to Liberty is the second in a series of three payments. The first payment of US$54 million, comprising US$10 million in option fees to Lepanto and US$44 million as a non-refundable down-payment to Liberty, was paid with the signing of the option agreement in September 2010. Should Gold Fields decide to proceed with the acquisition of the 60% interest in FSE, the final payment of US$220 million is expected to be paid during the first half of 2012. The total pre-agreed acquisition price for a 60% interest in FSE, inclusive of all of the above payments, is US$340 million.
Following the signing of the option agreements Gold Fields commenced with an extensive drilling programme and currently has eight underground drill rigs turning. Initial results support the existence and extent of the known core of mineralisation as well as further extensions both laterally and at depth beyond this core. The company is continuing with its underground drilling programme and has also commenced with surface geotechnical drilling during this quarter.
Nick Holland, Chief Executive Officer of Gold Fields, says: "We are pleased with the results to date and excited at the prospect of establishing a long-standing mutually beneficial relationship in a promising region in the Philippines."
FSE is located in the northern part of Luzon, the largest island in the Philippines. The project is situated in an existing mining camp in close proximity to two other mines historically operated by Lepanto, one of which is currently in production. FSE has ready access to established infrastructure, including roads, tailings facilities, power and water. The existing workforce on the doorstep of FSE is part of a community established around mining over the past 70 years.
Notes to editors
About Gold Fields
Gold Fields is one of the world's largest unhedged producers of gold with attributable annualised production of 3.6 million gold equivalent ounces from eight operating mines in Australia, Ghana, Peru and South Africa. Gold Fields also has an extensive and diverse global growth pipeline with four major projects in resource development and feasibility, with construction decisions expected in the next 18 to 24 months. Gold Fields has total attributable gold equivalent Mineral Reserves of 76.7 million ounces and Mineral Resources of 225.4 million ounces. Gold Fields is listed on the JSE Limited (primary listing), the New York Stock Exchange (NYSE), NASDAQ Dubai Limited, Euronext in Brussels (NYX) and the Swiss Exchange (SWX).
Sponsor: J.P. Morgan Equities Limited
Gold Fields Limited
150 Helen Road,
Postnet Suite 252
Private Bag X30500
Tel +27 11 562-9700
Fax +27 11 562-9838
Tel +508 839-1188
Mobile +857 241-7127
SOURCE Gold Fields Limited