GFI
GOGOF
GFI - Gold Fields Limited - Gold Fields Secures 40% In Far Southeast
Gold Fields Limited
(Reg. No. 1968/004880/06)
(Incorporated in the Republic of South Africa)
("Gold Fields" or "the Company")
JSE, NYSE, DIFX Share Code: GFI
ISIN Code: ZAE000018123
MEDIA RELEASE
GOLD FIELDS SECURES 40% IN FAR SOUTHEAST
Johannesburg, 20 March 2012: Gold Fields Limited (Gold Fields) (JSE, NYSE,
NASDAQ Dubai: GFI) is pleased to announce that it has exercised its 40% option
in the gold-copper Far Southeast Project in the Philippines after making a
US$110-million payment this week.
On 20 September 2010 Gold Fields entered into two option agreements with Lepanto
Consolidated Mining Company (Lepanto), 60% owner of Far Southeast, and Liberty
Express Assets (Liberty), 40% owner of Far Southeast, granting Gold Fields an
option to acquire a 60% interest in Far Southeast for a total consideration of
US$340-million.
After making two down-payments of US$44-million and US$66-million in September
2010 and September 2011 respectively, Gold Fields has decided to bring forward
half of the remaining US$220-million payment to acquire Liberty`s 40% interest
in Far Southeast.
Gold Fields continues to hold its option to acquire an additional 20% stake in
Far Southeast from Lepanto for a further US$110-million, which, if exercised,
would increase its total interest in Far Southeast to 60%.
The Liberty and Lepanto options were initially granted to Gold Fields for the
later of 18 months from signature in September 2010 or the date of receiving a
Financial or Technical Assistance Agreement (FTAA) for the project. A FTAA
licence allows a foreign corporation to control a majority interest in a
Philippine mining project.
Notwithstanding this provision, Gold Fields has the discretion to exercise
either option prior to the FTAA being granted. Gold Fields has decided to
exercise the Liberty option earlier than originally planned due to the fact
that:
The due diligence results to date are positive and demonstrate significant
upside to the resource potential;
By acquiring ownership of 40% it demonstrates its commitment to the project and
formalises its partnership with Lepanto; and
The early exercise of the Liberty option does not affect the remaining 20%
Lepanto option, which continues to be exercisable in accordance with the terms
of the agreement.
The FTAA application for the Far Southeast project was filed in November 2011
and based on the date of the filing Gold Fields expects it could be granted in
the second half of 2012. Gold Fields also expects to have a maiden Resource
statement for Far Southeast and commence a pre-feasibility study later this
year.
Nick Holland, Gold Fields CEO, commented: "We are extremely pleased that we now
own a 40% interest in Far Southeast, not just an option. The positive drilling
results have given us the confidence to show our commitment to the project and
the Philippines."
Far Southeast 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. Far Southeast has ready access to established
infrastructure, including roads, tailings facilities, power and water. The
existing workforce on the doorstep of Far Southeast 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 3.5 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 12 to 36 months. Gold Fields has total attributable gold
equivalent Mineral Reserves of 80.6 million ounces and Mineral Resources of 217
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
www.goldfields.co.za
Enquiries
Investor Enquiries
Zakira Amra
Tel: +27 11 562 9775
Mobile: +27 79 694 0267
Email: Zakira.Amra@goldfields.co.za
Willie Jacobsz
Tel: +1 508 839 1188
Mobile: +1 857 241 7127
Email: Willie.Jacobsz@gfexpl.com
Media Enquiries
Sven Lunsche
Tel: +27 11 562 9763
Mobile: +27 83 260 9279
Email: Sven.Lunsche@goldfields.co.za
Date: 22/03/2012 08:00:01 Produced by the JSE SENS Department.
The SENS service is an information dissemination service administered by the
JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or
implicitly, represent, warrant or in any way guarantee the truth, accuracy or
completeness of the information published on SENS. The JSE, their officers,
employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature,
howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS. |