Gold Fields Makes Second Down-payment on FSE Gold-Copper Project
JOHANNESBURG, September 21, 2011 /PRNewswire/ –
Gold Fields Makes Second US$66 Million Down-Payment Under the
Option Agreement to Acquire a 60% Interest in the FSE Gold-Copper Project in
the Philippines
Gold Fields Limited (Gold Fields) (JSE, NYSE, NASDAQ Dubai: GFI) has
made the second down-payment of US$66 million in terms of the option
agreements to acquire a 60% interest in the undeveloped gold-copper Far
Southeast (FSE) deposit in the Philippines. The option agreements were
entered into with Lepanto Consolidated Mining Company (Lepanto), a company
listed in the Philippines, and Liberty Express Assets, a private holding
company.
The non-refundable down-payment of US$66 million to Liberty is the
second in a series of three payments. The first payment of US$54 million,
comprising US$10 million in option fees to Lepanto and US$44 million as a
non-refundable down-payment to Liberty, was paid with the signing of the
option agreement in September 2010. Should Gold Fields decide to proceed
with the acquisition of the 60% interest in FSE, the final payment of US$220
million is expected to be paid during the first half of 2012. The total
pre-agreed acquisition price for a 60% interest in FSE, inclusive of all of
the above payments, is US$340 million.
Following the signing of the option agreements Gold Fields commenced
with an extensive drilling programme and currently has eight underground
drill rigs turning. Initial results support the existence and extent of the
known core of mineralisation as well as further extensions both laterally
and at depth beyond this core. The company is continuing with its
underground drilling programme and has also commenced with surface
geotechnical drilling during this quarter.
Nick Holland, Chief Executive Officer of Gold Fields, says: “We are
pleased with the results to date and excited at the prospect of establishing
a long-standing mutually beneficial relationship in a promising region in
the Philippines.”
FSE is located in the northern part of Luzon, the largest island in the
Philippines. The project is situated in an existing mining camp in close
proximity to two other mines historically operated by Lepanto, one of which
is currently in production. FSE has ready access to established
infrastructure, including roads, tailings facilities, power and water. The
existing workforce on the doorstep of FSE is part of a community established
around mining over the past 70 years.
Notes to editors
About Gold Fields
Gold Fields is one of the world’s largest unhedged producers of gold
with attributable annualised production of 3.6 million gold equivalent
ounces from eight operating mines in Australia, Ghana, Peru and South
Africa. Gold Fields also has an extensive and diverse global growth pipeline
with four major projects in resource development and feasibility, with
construction decisions expected in the next 18 to 24 months. Gold Fields has
total attributable gold equivalent Mineral Reserves of 76.7 million ounces
and Mineral Resources of 225.4 million ounces. Gold Fields is listed on the
JSE Limited (primary listing), the New York Stock Exchange (NYSE), NASDAQ
Dubai Limited, Euronext in Brussels (NYX) and the Swiss Exchange (SWX).
Sponsor: J.P. Morgan Equities Limited
Gold Fields Limited
Reg. 1968/004880/06
150 Helen Road,
Sandown, Sandton,
2196
Postnet Suite 252
Private Bag X30500
Houghton, 2041
South Africa
Tel +27 11 562-9700
Fax +27 11 562-9838
http://www.goldfields.co.za
Enquiries
Investor Enquiries
Zakira Amra
Tel +27-11-562-9775
Mobile +27(0)79-694-0267
email Zakira.Amra@goldfields.co.za
Nikki Catrakilis-Wagner
Tel +27-11-562-9706
Mobile +27(0)83-309-6720
email Nikki.Catrakilis-Wagner@goldfields.co.za
Willie Jacobsz
Tel +508 839-1188
Mobile +857 241-7127
email Willie.Jacobsz@gfexpl.com
Media Enquiries
Sven Lunsche
Tel +27-11-562-9763
Mobile +27(0)83-260-9279
email Sven.Lunsche@goldfields.co.za
SOURCE Gold Fields Limited
