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South Africa's Gold Fields sells Darlot mine in Australia for $15 million

Thursday, 3 August 2017

Gold Fields (NYSE, JSE:GFI), the world’s seventh-largest producer of the precious metal is selling its Darlot mine in Western Australia to Perth-based Red 5 (ASX:RED) for A$18.5 million (about $15 million).

The South African miner, with operations from Australia to Peru, said the deal involves A$12 million in cash and A$130 million in Red 5 shares.

The sale of Darlot, acquired by Gold Fields in 2013, is expected to close at the end of September, the company said.

Red 5 is also acquiring Saracen Mineral Holdings' (ASX:SAR) King of the Hills mine, in Western Australia.

Managing director Mark Williams said the deals marked the beginning of a new chapter for the company.

“We have entered into binding agreements to acquire two significant Western Australian gold assets which, together, establish the foundations for a long-term consolidation and growth strategy in one of Australia’s most prolific and active gold districts, the Leonora-Leinster region of WA," he said in the statement.

“The cornerstone of this strategy is the proposed acquisition of the Darlot gold mine from Gold Fields — a transaction which allows the group to transition immediately back into gold production at a well established gold mine in Australia where we can leverage our operational experience and capabilities.”

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