OWN CORRESPONDENT, Johannesburg | Thursday 8.30pm.
GOLD Fields on Thursday announced the acquisition of AngloGold’s entire 21,5% interest in Driefontein in a move designed to pave the way for a reverse takeover of Driefontein.
That deal will make Gold Fields the world’s third largest gold producer with annual production of around 4-million ounces and total gold reserves of some 96-million ounces.
A Gold Fields statement said the new company would have a market value in excess of R12-billion. The statement claims the reverse takeover of Driefontein — of which it currently owns 40% — will effectively create an enlarged, financially robust “new” Gold Fields with significantly increased market liquidity.
“The new Gold Fields will wholly own as its core assets three of the highest quality gold mines in South Africa, Beatrix, Driefontein and Kloof, as well as 100% of Leeudorn, Oryx and Libanon, 70% of Tarkwa Gold Mine in Ghana and 54% of St Helena,” the company said.
“We’re hoping to complete the deal within around three months, subject to shareholder approval,” Gold Fields spokesman Willie Jacobz said. AngloGold chief executive Bobby Godsell said the agreement last year with Gold Fields to jointly manage Driefontein led to a “pattern of cooperation”, which enabled it to sell off its shares in the company to its partner.
AngloGold will use the proceeds from the sale of its stake in Driefontein to build its own gold interests “in a way that should create wealth for AngloGold shareholders,” Godsell said.