Gold Fields sells Venezuelan assets for over $350 million

Gold Fields has reached an agreement under which Gold Fields it will effectively dispose of its assets in Venezuela to Rusoro Mining, for a total consideration of approximately $532 million. Rusoro will pay Gold Fields a minimum of $150 million in cash, $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 $425 million.”

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."