Dar­lot mine in Oz sold for A$18.5m

The Star Early Edition - - COMPANIES -

GOLD FIELDS yes­ter­day announced the sale of its Dar­lot mine in Western Aus­tralia to ASX-listed gold pro­ducer, Red 5 for a to­tal con­sid­er­a­tion of A$18.5 mil­lion (R195.11m), com­pris­ing A$12m in cash and 130 mil­lion Red 5 shares. The cash com­po­nent is made up of A$7m up front and A$5m de­ferred for up to 24 months. The de­ferred con­sid­er­a­tion may be taken as ad­di­tional shares in Red 5 or as cash at Gold Fields’ elec­tion. Gold Fields said Red 5 in­tends to un­der­take a rights is­sue in order to as­sist with the fund­ing of the cash com­po­nent and gen­eral work­ing cap­i­tal pur­poses, while Gold Fields will un­der­write the rights is­sue up to A$7m. The sale of Dar­lot is in line with Gold Fields’ strat­egy to con­tin­u­ally up­grade its port­fo­lio. The com­mence­ment of the sale process was announced to the mar­ket in Fe­bru­ary 2017. Gold Fields is a glob­ally di­ver­si­fied pro­ducer of gold with eight op­er­at­ing mines in Aus­tralia, Ghana, Peru and South Africa with a pri­mary list­ing on the JSE, with sec­ondary list­ings on the New York Stock Ex­change and the Swiss Ex­change. Dar­lot was ac­quired by Gold Fields in 2013 as part of the ac­qui­si­tion of Bar­rick Gold’s Yil­garn South as­sets. Gold Fields in­vested heav­ily to ex­tend the life of the mine be­yond the ini­tial pro­jected six months, which re­sulted in Dar­lot pro­duc­ing more than 241 000 ounces of gold in the past three years. Red 5’s ac­qui­si­tion of Dar­lot mine comes af­ter its an­nounce­ment that it plans a new growth strat­egy.– ANA

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