World number four gold miner Gold Fields announced on Friday that it had acquired an extra 18,27-million Western Areas shares at a price of R40 per share for a purchase consideration of about R731-million.
The acquisition, completed on Wednesday, increased Gold Fields’ total stake in Western Areas to 23,27-million shares, or 15,47% of that company’s total issued share capital.
Gold Fields chief executive officer Ian Cockerill said: “South Deep is a very significant gold project and we are pleased to have increased our exposure to it through this purchase. We believe that there is significant potential for regional cooperation between our Kloof Gold mine and South Deep, in particular, as it relates to the phase two development of that ore body, as we have stated on numerous previous occasions. We aim to play a role in achieving that cooperation.”
Western Areas owns 50% of the developing South Deep gold mine, adjacent to Gold Fields’ Kloof Gold mine, near Johannesburg.
Barrick Gold of Canada owns the other 50% of South Deep.
“South Deep is a very good ore body and it is contiguous with the Kloof. There are significant opportunities for co-operation on the South Deep phase two project. Gold Fields is very keen to co-operate with South Deep,” said Gold Fields spokesperson Willie Jacobsz.
Harmony Gold has a 29,2% stake in Western Areas. Harmony chief executive officer Bernard Swanepoel has raised the prospect of selling the company’s Target gold mine in the Free State to Western Areas in exchange for an increased stake in Western Areas.
Gold Fields bought into Western Areas so as to be party to the discussions over the future of the company, Jacobsz said.
The recent skip accident at the South Deep mine and the Western Areas hedge book were short-term problems for a mine which could be mined for the next 50
years, he added. – I-Net Bridge