Gold Fields Limited is pleased to announce the sale of its palladiumrich, polymetallic Arctic Platinum Project (APP) in northern Finland.
The buyer is a Finnish subsidiary of private equity fund CD Capital Natural Resources Fund III (CD Capital), headquartered in London.
The purchase consideration comprises $40 million cash and royalty (2% NSR (net smelter return) on all metals, with 1% capped at $20 million and 1% uncapped. The transaction, including full payment of the cash consideration, was completed today, 24 January 2018.
The sale includes all of the project assets for APP including the Suhanko mining licence and associated real estate, all other mining and exploration properties, project permits and all other project related assets.
“The divestment of APP is consistent with our strategy of divesting non-core assets, and reinforces the focus that Gold Fields continues to show in relation to its asset portfolio. We are pleased to have balanced the purchase price between up-front cash and continued long-term exposure through the royalty, and believe this to be a positive outcome for both parties. CD Capital continues to build its own portfolio of development assets, and we have been impressed with their professional approach and commitment to the transaction and the project. We wish them every success in the development of the project,” comments Nick Holland, Gold Fields Chief Executive Officer.