Gold Fields sells its stake in Woodjam projects in Canada
Vancouver, 13 August 2015: Gold Field has reached an agreement with its partner, Consolidated Woodjam Copper Corp. (“Woodjam Copper”) (TSX-V: WCC), to sell its 51% interest in the Woodjam copper-gold-molybdenum projects located in British Columbia (BC), Canada.
Under the agreement Woodjam Copper will procure 100% control of the Woodjam project by purchasing all of the shares in the wholly owned subsidiary that currently holds Gold Fields’ 51% joint venture interest. In exchange, Gold Fields will be issued with new Woodjam Copper shares to take its aggregate holding in Woodjam Copper from 1.1% to 19.9%, and Gold Fields will retain a 2% Net Smelter Return Royalty (NSR) over all unencumbered land owned by Woodjam Copper. This royalty may be reduced at any time to 1% by paying Gold Fields CAD$5,000,000 in cash. An NSR of 0,5% will apply to certain encumbered claims, subject to terms and conditions.
In addition, Gold Fields’ holding shall be topped-up (to a maximum of 50,000,000 additional shares) on the third anniversary of the agreement, for no additional consideration so that Gold Fields’ holding at that time remains equal to 19.9% of the then issued and outstanding shares of Woodjam Copper. Gold Fields will have the option of maintaining its interest by participating in future share placements. Furthermore, Woodjam Copper will pay Gold Fields all past accumulated refundable BC mineral exploration tax credits earned in the current Gold Fields subsidiary. These will be settled in cash as they are received. The agreement remains subject to acceptance by the TSX-Venture Exchange, and the transaction is expected to close once these regulatory approvals have been obtained.
The Woodjam notice can be found at: http://www.woodjamcopper.com/2015/08/13/consolidated-woodjam-copper-acquires-100-ownership-woodjam-copper-gold-project/.
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