| Mon 20 Sep 2010, 15:57 | | GFI - Gold Fields Limited - Gold Fields signs option agreement for 60% interest |
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GFI
GOGOF
GFI - Gold Fields Limited - Gold Fields signs option agreement for 60% interest
in Philippines Gold-Copper FSE project
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 SIGNS OPTION AGREEMENT FOR 60% INTEREST IN PHILIPPINES GOLD-COPPER
FSE PROJECT
Johannesburg, 20 September 2010: Gold Fields Limited (Gold Fields) (JSE, NYSE,
NASDAQ Dubai: GFI) is pleased to announce that it has entered into option
agreements with Lepanto Consolidated Mining Company (Lepanto), a company listed
in the Philippines, and Liberty Express Assets (Liberty), a private holding
company, to acquire a 60% interest in the undeveloped gold-copper Far Southeast
(FSE) deposit in the Philippines.
The agreements provide Gold Fields with an 18-month option on FSE, during which
time Gold Fields will conduct a major drilling programme as part of a
feasibility study on FSE. Gold Fields is required to pay (i) US$10 million in
option fees to Lepanto; and (ii) US$44 million as a non-refundable down-payment
to Liberty upon signing of the option agreements.
Should Gold Fields, after a 12-month period, decide to proceed with the
acquisition of the 60% interest in FSE, a further non-refundable down-payment of
$66 million will be payable to Liberty, with the final payment of US$220 million
payable at the expiration of the option period. The total pre-agreed acquisition
price for a 60% interest in FSE, inclusive of all of the above payments, is
US$340 million.
FSE is located within an existing mining camp and is 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 supportive community established around mining over the past 70
years.
While there has not been sufficient work completed to declare a mineral resource
for FSE, drilling undertaken over a number of years indicates the presence of a
large, concealed gold-copper mineralised porphyry system. More than 80 diamond
drill holes totalling more than 35,000 metres have intersected a mineralised
zone with approximate dimensions of 900 metres east-west by 900 metres north-
south by 900 metres vertical. Within this zone Gold Fields considers that
mineralisation is continuous. While grades are variable, the following historic
drill intersections are considered typical of the mineralized zone: 691m at
2.5g/t Au, 0.9% Cu; 906.8m at 1.5g/t Au, 0.5% Cu; 613.1m at 0.8g/t Au, 0.8% Cu;
733.9m at 0.7g/t Au, 0.4% Cu; and 517.4m at 0.6g/t Au, 0.4% Cu.
Nick Holland, Chief Executive Officer of Gold Fields, said: "This transaction
provides Gold Fields with a unique and exciting opportunity to gain exposure to
what will undoubtedly prove to be a world-class deposit. It also advances our
strategy of growing each of our three international regions to 1 million ounces,
either in production or in development, by 2015.
"We now have exciting growth projects in each of the regions in which we
operate. In South Africa we have the world-class developing South Deep mine, in
South America we have the Chucapaca project in Peru, in West Africa the
Yanfolila project in Mali, and now Far Southeast in the Philippines, which forms
part of the Australasia region," Mr Holland added.
FSE is located in the northern part of Luzon, the largest island in the
Philippines.
Notes to editors
About Gold Fields
Gold Fields is one of the world`s largest unhedged producers of gold with
attributable production of 3.5 million gold equivalent ounces per annum from
nine operating mines in South Africa, Ghana, Australia and Peru. Gold Fields
also has an extensive growth pipeline with both greenfields and nearmine
exploration projects at various stages of development. Gold Fields has total
attributable gold equivalent Mineral Reserves of 78 million ounces and Mineral
Resources of 281 million ounces. Gold Fields is listed on JSE Limited (primary
listing), the New York Stock Exchange (NYSE), the NASDAQ Dubai Limited, the
Euronext in Brussels (NYX) and the Swiss Exchange (SIX).
Gold Fields Limited
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
www.goldfields.co.za
Enquiries:
Investor Enquiries:
Willie Jacobsz
Tel: +508 839 1188
Mobile: +857 241 7127
Email: willie.jacobsz@gfexpl.com
Nikki Catrakilis-Wagner
Tel: +27 11 562 9706
Mobile: +27 83 309 6720
Email: nikki.catrakilis-wagner@goldfields.co.za
Media Enquiries:
Sven Lunsche
Tel: +27 11 562 9763
Mobile: +27 83 260 9279
Email: sven.lunsche@goldfields.co.za
Sponsor:
J.P. Morgan Equities Limited
Date: 20/09/2010 15:57:01 Produced by the JSE SENS Department.
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