Gold Fields Sells Venezuela Assets

Gold Fields Ltd. said it has reached an agreement to shed its assets in Venezuela to Rusoro Mining Ltd., for 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.

Gold Fields CEO Ian Cockerill said: “Additional capital investment is required to realize 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.”

Proceeds from the sale, according to Gold Fields, will be reinvested, with options under consideration including inter alia, debt reduction and the funding of Gold Fields' capital investment portfolio.

As featured in Womp 07 Vol 8 - www.womp-int.com