| Wed 3 Jun 2009, 11:00 | | GFI - Gold Fields - Media release - Gold Fields sells stake in sino Gold for |
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GFI
GOGOF
GFI - Gold Fields - Media release - Gold Fields sells stake in sino Gold for
Us$282 Million
Gold Fields Limited
(Reg. No. 1968/004880/06)
(Incorporated in the Republic of South Africa)
("Gold Fields" or "the Company")
JSE, NYSE, NASDAQ Dubai - Share Code: GFI
NYX Code: GFLB, and SWX Code: GOLI
ISIN: ZAE000018123
MEDIA RELEASE
GOLD FIELDS SELLS STAKE IN SINO GOLD FOR US$282 MILLION
Johannesburg, 3 June 2009: Gold Fields Limited (Gold Fields) (JSE, NYSE, NASDAQ
Dubai: GFI) is pleased to announce that agreement has been reached in terms of
which Gold Fields will sell its current 19.9% stake in Sino Gold Mining Limited
(Sino Gold) (ASX: SGX, HKSE: 1862) to Eldorado Gold Corporation (Eldorado) (TSX:
ELD, NYSE-A: EGO) for a total consideration of approximately US$282 million*.
Gold Fields will receive a share exchange ratio of 48 Eldorado shares for every
100 Sino Gold shares, which will result in Gold Fields holding 27,824,654
Eldorado shares or approximately 7% of the outstanding shares of Eldorado on a
fully diluted basis.
In addition, Gold Fields will hold a top-up right for a period of 18 months,
which will apply should Eldorado purchase an additional 5% or more of the
outstanding shares of Sino Gold and the sellers in that transaction realize a
consideration ratio in excess of the share exchange ratio of 0.48 Eldorado
shares per Sino Gold share received by Gold Fields.
Nick Holland, Chief Executive Officer of Gold Fields, said: "After having
received several expressions of interest for our stake in Sino Gold, we believe
that this transaction is the most value creating for our shareholders because it
has enabled us to crystallise the value of our investment while retaining
exposure to China as a potential area for the future.
Holland added that this sale did not detract in any way from Gold Fields`
strategy to grow its international production: "We have definitely not changed
course and our aspiration to grow production in each of our three international
regions, West Africa, South America and Australasia, to at least 1 million
ounces per annum, within a three to five year time horizon, remains intact. Gold
Fields will retain some exploration joint ventures with Sino over the Jinshu
project and other nominated properties in China, while strengthening its own
team in China, to allow for independent growth in that country.
The transaction is subject to regulatory approvals, including South African
Reserve Bank approval and is expected to close at the end of August 2009.
*Based on the closing price of Eldorado on 2 June 2009
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 9801
www.goldfields.co.za
Enquiries:
Media and Investor Enquiries
Willie Jacobsz
Tel: +508 839 1188
Mobile: +857 241 7127
Email: willie.jacobsz@gfexpl.com
Investor Enquiries
Nikki Catrakilis-Wagner
Tel: +27 11 562 9706
Mobile: +27 (0) 83 309 6720
Email: nikki.catrakilis-wagner@goldfields.co.za
Media Enquiries
Marritt Claassens
Tel: +27 11 562 9774
Mobile: +27 (0) 82 307 3297
Email: marrittc@goldfields.co.za
About Gold Fields
Gold Fields Limited is one of the world`s largest unhedged producers of gold
with attributable steady state production of approximately 4 million ounces per
annum from nine operating mines in South Africa, Peru, Ghana and Australia. The
company has total attributable ore reserves of 83 million ounces and mineral
resources of 251 million ounces. Gold Fields is listed on the JSE Limited
(primary listing), New York Stock Exchange (NYSE), NASDAQ Dubai Limited (NASDAQ
Dubai), NYSE Euronext in Brussels (NYX) and Swiss Exchange (SWX). For more
information please visit the Gold Fields website at www.goldfields.co.za.
About Eldorado
Eldorado is a gold producing, exploration and development company actively
growing businesses in Brazil, China, Greece, and Turkey and surrounding regions.
Eldorado is one of the lowest cost pure gold producers and has international
expertise in mining, finance and project development, together with highly
skilled and dedicated staff, Eldorado is well positioned to grow in value by
pursuing new opportunities.
About Sino Gold
Sino Gold has been active in China since 1996 and owns 82% of the Jinfeng gold
mine in Guizhou Province, southern China, which has Mineral Resources containing
4.6 million ounces and Ore Reserves containing 3.2 million ounces. Jinfeng will
be one of the largest gold mines in China when the project achieves planned
initial production of 180,000 ounces per annum. Sino Gold aims to increase
Jinfeng`s gold production to optimal levels as quickly as possible. The White
Mountain project in Jilin Province, northeast China, is now being developed into
Sino Gold`s second mine. In December 2007, Sino Gold completed the takeover of
Golden China Resources Corporation and announced the Eastern Dragon acquisition.
Sino Gold now has projects that provide a clear pathway for the Company to
produce 500,000 ounces of low-cost gold annually by 2010 Sino Gold is a
producing gold company actively pursuing a discovery and acquisition strategy in
China. With a "first mover" advantage, it holds a strong competitive position in
China. Sino Gold is listed on the Australian Securities Exchange (ASX Code: SGX)
and the Stock Exchange of Hong Kong (SEHK Code: 1862).
Date: 03/06/2009 11:00:38 Produced by the JSE SENS Department.
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