Upon completion of this transaction, the company will increase its interest in each of the Tarkwa and Damang gold mines from 71.1% to 90%, with the remaining 10% being held by the Government of Ghana.
Gold Fields will acquire an additional 181,000 ounces of annual production at current cash costs of $540/oz and Notional Cash Expenditure of about $940/oz based on results for the six months ended 31 December 2010.
The company will also acquire an additional 2.14 million reserve ounces at a cost of about $300 per ounce; an additional 3.27 million resource ounces at a cost of about $198 per ounce; a significant resource and reserve upside potential, in particular at the Damang mine; and $20m in working capital.
The transaction for the stake acquisition is expected to be completed by the end of this week.
Gold Fields is a producer of gold with attributable annualised production of 3.6 million gold equivalent ounces from eight operating mines in Australia, Ghana, Peru and South Africa.
