Gold Fields enters joint venture with Asanko Gold in Ghana

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Gold Fields Limited is pleased to announce it has, through a wholly owned subsidiary, entered into a definitive agreement subject to certain customary conditions to form a 50:50 incorporated joint venture with Canada’s Asanko Gold.

The Gold Fields subsidiary has agreed to acquire a 50% stake in Asanko Gold Ghana Limited’s (AGG) 90% interest in the Asanko Gold Mine, associated properties and exploration rights in Ghana (AGM).

The AGM is a multi-deposit complex, with two main deposits, Nkran and Esaase, and nine known satellite deposits. The purchase consideration comprises an upfront payment of $165 million on closing of the transaction and a deferred payment of $20 million.

In addition, Gold Fields’ subsidiary agrees to subscribe to a 9.9% share placement in Asanko by way of a private placement of 22 354 657 Asanko shares at a price of approximately $0.79, equal to the five-day VWAP on the day prior to date of this announcement, for a total consideration of $17.6 million. The subscription will close shortly after the date of this announcement, and is not conditional on completion of the joint venture transaction.

The acquisition will be funded from cash and/or by drawing down on Gold Fields existing debt facilities. Importantly, the AGM is an in-production asset that generates EBITDA and cash flow and does not require any additional investment by the JV partners.

 

 

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