JOHANNESBURG, October 1, 2013 /PRNewswire/ --
Gold Fields Limited (Gold Fields) (JSE, NYSE, NASDAQ Dubai: GFI) is pleased to announce that it has completed the acquisition of the Granny Smith, Lawlers and Darlot gold mines (collectively the Yilgarn South Assets) in Western Australia, from Barrick Gold Corporation (Barrick).
Gold Fields acquired the assets for a total net consideration of US$270 million after adjustments for working capital, mine capital and employee entitlements.
In accordance with the sale and purchase agreement, Gold Fields elected to satisfy half of the consideration by delivering 28.7 million of its common shares (which was based on the 5-day VWAP for the ADR's trading on the NYSE prior to closing). The balance of US$135 million (less a US$30 million deposit paid on signing of the agreement) was paid from cash resources held by Gold Fields in Australia.Nick Holland, Chief Executive Officer of Gold Fields, said: "We are pleased to have completed this acquisition of in-production ounces. Today we commenced integrating these assets with our existing operations in Western Australia where Gold Fields now has five active mines. Considering the potential for regional and operational synergies with our existing assets in the region, as well as the benefits from applying Gold Fields' low cost, cash-focussed operating model to the acquired assets, this acquisition should have a positive impact on the Group's operations. Based on reported production for the first half of 2013, these assets are expected to add approximately 400,000 ounces of production to the Gold Fields portfolio, at costs lower than the current Group average. This transaction also significantly advances Gold Fields' strategic objective of achieving a more balanced and globally diversified portfolio, with Australia now accounting for approximately 42% of Gold Fields' production, Ghana approximately 33%, Peru approximately 13% and South Africa approximately 12%. Notes to editors