The R4,1-billion deal between Mvela Resources and world number four gold group Gold Fields is likely to be completed within two months or by the end of March, Gold Fields said on Thursday.
The transaction will see Mvela take a 15% stake in Gold Fields’ South African operations, which consist of the Beatrix, Driefontein and Kloof gold mines.
Once the transaction is implemented Mvela will advance a loan of R4,139-billion to Gold Fields South Africa and at the end of five years the loan will be repaid.
Mvela Gold will then subscribe for 15% of the share capital of Gold Fields South Africa.
At 0925, Gold Fields was quoted down 2,1% or R2,12 at R92,60. Earlier, the group reported net earnings per share, excluding exceptional items, for the December 2003 quarter of 23 cents from 29 cents in the September 2003 quarter.
Analysts had expected Gold Fields to report net earnings of 26 cents.
“Gold Fields’ December quarter was a good one with everything doing well expect for the Driefontein mine,” said Investec analyst Leon Esterhuizen. – I-Net Bridge