Sale of Darlot mine to Red 5
Johannesburg, 3 August 2017: Gold Fields Limited (Gold Fields) (JSE, NYSE: GFI) is pleased to announce the sale of its Darlot mine in Western Australia, through a wholly owned subsidiary, to ASX-listed Red 5 Limited for a total consideration of A$18.5m, comprising A$12m in cash and 130m Red 5 shares. The cash component is made up of A$7m upfront 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.
Red 5 intends to undertake a rights issue in order to assist with the funding of the cash component and general working capital purposes. Gold Fields will underwrite the rights issue up to A$7m.
The sale of Darlot is in line with the company’s strategy to continually upgrade the Gold Fields portfolio. The commencement of the sale process was announced to the market in February 2017.
Darlot was acquired by Gold Fields in 2013 as part of the acquisition of Barrick Gold’s Yilgarn South assets. Gold Fields has 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.
The transaction is subject to customary conditions, including Red 5 shareholder approval, and is scheduled for completion and ownership transfer in September 2017.
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