| Thu 24 Jan 2002, 0:00 | | Gold Fields And Repadre Finalises Purchase Of Dama |
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Gold Fields Limited
Share Code:GFI
ISIN Code: ZAE000018123
Repadre Capital Corporation
Joint Press Release
Johannesburg and Toronto: January 24, 2002: Gold Fields Limited Ý("Gold
Fields") (JSE:GFI, Nasdaq:GOLD)¨ and Repadre Capital Corporation
Ý("Repadre") (TSE:RPD)¨ are pleased to announce that the purchase by Gold
Fields and Repadre of Ranger Minerals Limited's Ý("Ranger") (ASE:RGS)¨ 90
percent beneficial interest in Abosso Goldfields Limited ("Abosso"), and its
associated mining and exploration assets, has been concluded. Abosso is an
unlisted Ghanaian company holding 100 percent of the Damang Gold Mine in
Ghana.
The purchase consideration comprised A$63.3 million in cash contributed by
Gold Fields and 4.0 million Repadre shares contributed by Repadre. Gold
Fields funded the purchase through a corporate debt facility provided by
Barclays Capital, the investment banking division of Barclays Bank PLC.
With the conclusion of the transaction, the shareholding in Abosso is 71.1
percent owned by Gold Fields, 18.9 percent owned by Repadre and 10 percent
by the Ghanaian Government. This shareholding mirrors that of Gold Fields
Ghana Limited, owner of the adjacent Tarkwa Gold Mine of which Gold Fields
is the operator.
Chris Thompson, Chairman and Chief Executive Officer of Gold Fields, said:
"This is a particularly attractive acquisition for Gold Fields. In addition
to the potential synergies between the two properties, it gives us control
of one of the most permissive gold provinces in West Africa. Between Tarkwa
and Damang we now have more than 18 kilometers of Tarkwaian Structure along
strike, similar to the geology in which we are successfully heap leaching at
Tarkwa. In addition, the Damang property contains at least two additional
prospects with mineralisation similar to that presently being mined at
Damang, which could be amenable to milling. We are planning to aggressively
explore this ground. This acquisition also gives Tarkwa access to the Damang
mill facility, enabling greater flexibility in the treatment of varying
types of ore found in the area."
Joe Conway, President and Chief Executive Officer of Repadre, comments: "The
combined Tarkwa / Damang complex will contribute more than 150,000 ounces of
annual gold production to Repadre's account. We look forward to the
synergies that will arise from this combination and the continuance of our
excellent relationship with the operator, Gold Fields."
Damang has resources of approximately 3.03 million ounces and reserves of
1.53 million ounces. During the financial year ended June 31, 2001 the mine
processed 4.54 million tonnes at an average grade of 2.42 grams per tonne to
recover 322,046 ounces of gold at total cash costs of US$208 per ounce.
As at December 31, 2001, Abosso had US$10 million of external debt;
approximately US$9 million of net working capital; and a hedge book of
approximately 420,000 ounces of gold which, at current gold prices, has a
positive mark-to-market value and will be opportunistically unwound over the
next three months.
Gold Fields Limited is one of the world's largest unhedged gold producers,
with operating mines in South Africa, Ghana and Australia. This acquisition,
together with the recently acquired St Ives and Agnew Mines in Australia,
increases attributable gold production from 3.7 million ounces to 4.5
million ounces, attributable reserves to 84 million ounces and attributable
resources to more than 150 million ounces. Gold Fields is listed on the
Johannesburg, Nasdaq, London, Paris and Swiss exchanges.
Repadre is a public company listed on the Toronto Stock Exchange whose
principal activity is the creation and purchase of royalties and non-
operating interests on a global basis. One of Repadre's main assets is its
18.9 percent interest in Gold Fields Ghana Limited. Repadre also holds a 1
percent royalty on future production from the Diavik diamond mine in Canada,
currently under construction with start-up expected in early 2003. During
the past month Repadre shares have been trading in the range C$4.25 to
C$5.25. In conjunction with the Abosso transaction and in light of
liquidity concerns that may arise from potential dispositions of Repadre
shares from Ranger's portfolio, Repadre's Board of Directors has agreed to
waive the provisions of its shareholder rights plan to allow Dundee Bancorp
to make normal course purchases of Repadre shares as allowed by applicable
securities legislation.
- end -
ENQUIRIES
GOLD FIELDS REPADRE RANGER
www.goldfields.co.za www.repadre.com www.ranger.com.au
South Africa
Willie Jacobsz Joseph Conway Guy Travis
Tel: +27 11 644-2460 Tel: +416-365-2430 Tel: +61 (0) 8 93648355
Fax: +27 11 484-0639 Fax: +416-365-8065 Fax: +61 (0) 8 93162254
Email:williej@goldfields.co.za Email: Email:
jconway@repadre.com guy.travis@ranger.com.au
North America
Cheryl Martin
Tel: +303 796-8683
Fax: +303 796-8293
Email: camartin@gfexpl.com
