JOHANNESBURG, Aug. 22, 2013 /CNW/ - Gold Fields Limited (Gold Fields) (JSE, NYSE, NASDAQ Dubai: GFI) today announced that it has entered into a binding sale and purchase agreement with Barrick Gold Corporation (Barrick) to acquire its interests in the Granny Smith, Lawlers and Darlot gold mines (collectively the Yilgarn South Assets) in Western Australia, for a consideration of US$300 million, subject to downward working capital adjustments to a maximum of US$30 million.
Nick Holland, Chief Executive Officer of Gold Fields, said:
"This is an attractive, opportunistic, and conservatively financed acquisition which is consistent with Gold Fields' strategy and focus. We see a clear path to value and, once fully integrated, these assets are expected to have a positive impact on Gold Fields' production, free cash flow and global credit rating."
The acquisition provides Gold Fields with:
- an additional 452,000 ounces of annual production, at an All-in sustaining cost (AISC) of US$1,137 per ounce ;
- 2.6 million reserve ounces at a cost of about US$115 per ounce ;
- 1.9 million resource ounces in addition to the reserve ounces; the total resource ounce acquisition cost is below US$67 per ounce .
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