| Fri 12 Oct 2007, 9:51 | | GFI - Gold Fields Sells Its Venezuela Assets For U |
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GFI
GOGOF
GFI - Gold Fields Sells Its Venezuela Assets For Us$532 Million
Gold Fields Limited
(Reg. No. 1968/004880/06)
(Incorporated in the Republic of South Africa)
Share Code: GFI
ISIN Code: ZAE000018123
("Gold Fields" or the "Company")
MEDIA RELEASE
GOLD FIELDS SELLS ITS VENEZUELA ASSETS FOR US$532 MILLION
Johannesburg, 12 October 2007: Gold Fields Limited (Gold Fields) (NYSE, JSE,
DIFX: GFI) is pleased to announce that agreement has been reached in terms of
which Gold Fields will effectively dispose of its assets in Venezuela to Rusoro
Mining Ltd. (Rusoro) (TSXV: RML), for a total consideration of approximately
US$532* million.
Rusoro will pay Gold Fields a minimum of US$150 million in cash, US$30 million
in convertible debt, and 140 million Rusoro shares, which will be approximately
38% of the outstanding shares of that Company after the transaction has been
concluded.
The transaction includes Rusoro acquiring Gold Fields` stake in the Choco 10
gold mine, as well as the contiguous mineral rights owned by Gold Fields.
Ian Cockerill, Chief Executive Officer of Gold Fields said:
"Additional capital investment is required to realise the full potential of the
Choco 10 gold mine. However, after careful consideration we have concluded that,
given the current environment, this investment is better made by others, with
Gold Fields retaining exposure to the upside inherent in the assets."
"The offer from Rusoro has presented us with an attractive opportunity to
achieve this objective, as well as a return of approximately 25% on our total
investment of US$425 million."
The proceeds from the sale will be reinvested to create value for Gold Fields`
shareholders. Options under consideration include, inter alia, debt reduction
and the funding of Gold Fields` extensive capital investment portfolio.
Cockerill added that while this sale reduced Gold Fields` international
footprint, the Company remained fully committed to its strategy of international
growth: "We have definitely not changed course and our aspiration to grow our
international portfolio with appropriately sized, value adding assets, remain as
strong as ever."
* Based on the 10-day VWAP of the Rusoro share price
The transaction is subject to various conditions, including South African
Reserve Bank and Rusoro stock exchange approvals, the raising of the required
funding by Rusoro, as well as approval by Rusoro shareholders, more than 50% of
whom has given written irrevocable support to the transaction. Rusoro and Gold
Fields expect the transaction to close in early December 2007.
Orion Securities Inc. acted as exclusive financial advisor and McCarthy Tetrault
LLP acted as legal advisor to Gold Fields.
A telephone conference call will be held at 16:00 Johannesburg time (10:00am
EST) today, 12 October 2007, to explain the rationale for the sale of the
Venezuela assets as well as the sale of the Essakane Project announced on
Thursday, 11 October 2007. The details of the conference call appear at the end
of this press release.
Gold Fields Limited is one of the world`s largest unhedged producers of gold
with production of approximately 4.0 million ounces per annum, mineral reserves
of 94 million ounces and mineral resources of 252 million ounces. The Group
employs some 47,000 employees across its operations and is listed on the JSE
Limited South Africa (JSE) (primary listing), the New York Stock Exchange (NYSE)
as well as the Dubai International Financial Exchange (DIFX).
Enquiries
Willie Jacobsz, Tel: +27 11 644-2460, Mobile: +27 82 493 1377,
Williej@goldfields.co.za
CONFERENCE CALL DETAILS
Friday, 12 October 2007
For Johannesburg: 16:00
For United Kingdom: 15:00 hours GMT
For Europe: 16:00 hours, European time
For North America: 10:00 a.m., Eastern standard time
DIAL IN NUMBERS
South Africa Toll: 011 535 3600 Toll-free 0800 200 648
USA Toll: 1 412 858 4600 Toll-free 1800 860 2442
Australia Toll-free 1800 350 100
United Kingdom Toll-free 0800 917 7042
Canada Toll-free 1 866 519 5086
Europe and other Toll: + 41 916 105 600 Toll-free + 800 246
78 700
Ask for Gold Fields call
SIMULTANEOUS AUDIO WEBCAST
Available at our website, www.goldfields.co.za
DIGITAL REPLAY AVAILABLE ONE-HOUR AFTER CALL
Playback code: 2541#
(Available for seven days)
South Africa & Other: + 27 11 305 2030
USA: 1 412 317 0088
United Kingdom: 0808 234 6771
Europe: + 41 91 612 4330 (Switzerland)
Australia: 1 800 091 250
Date: 12/10/2007 09:51:41 Produced by the JSE SENS Department.
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