Gold Fields approve US$667m acquisition

Gold Fields says it has approved the US$667million acquisition of IAMGOLD Corporation's 18.9 percent stake in the Tarkwa and Damang gold mines.

The transaction, when fully completed by the end of this week, will increase its interest in each of the Tarkwa and Damang gold mines from 71.1 percent to 90 percent, with the remaining 10 percent interest being held by the Government of Ghana.

The decision to buy-out its minority partners in its mines is part of Gold Fields’ strategy to own its operations 100 percent. The acquisition will add 181,000 ounces to the company's annual production -- at current cash cost of US$540 per ounce and notional cash expenditure of about US$940 per ounce.

Senior official of Gold Fields Ghana explained that the purchase will also add a further 2.14 million reserve ounces at a cost of about US$300 per ounce.

“Gold Fields has a target of achieving five million ounces per annum, either in production or in development, by the end of 2015.

“The first phase of the Greater Damang, with 29,000-metre drilling programme continued, with completion expected during the second quarter 2011.

“The drilling covers the entire strike length of this geological complex, to assess the cutback potential of the Huni, Damang and Juno deposits. A model update is expected to be completed in September 2011, incorporating the new drilling assays and geological understanding.”

Gold Fields is one of the world’s largest un-hedged producers of gold -- with attributable annualised production of 3.6 million ounces from eight operating mines in Australia, Ghana, Peru and South Africa.

Gold Fields also has an extensive and diverse global growth pipeline with four major projects in resource development and feasibility, with construction decisions expected in the next 18 to 24 months.

Gold Fields has total attributable gold equivalent Mineral Reserves of 76.7 million ounces and Mineral Resources of 225.4 million ounces.

In addition to its resource development projects, the Greenfields exploration portfolio also consists of three advanced drilling projects, seven initial drilling projects and nine target definition projects in Peru, Chile, Mali, Ghana, Canada, Finland, Kyrgyzstan, Australia and the Philippines. Mine exploration continued at St Ives, Agnew, Damang and commenced at Cerro Corona during the quarter.

Gold Fields is listed on the JSE Limited, the New York Stock Exchange, NASDAQ Dubai Limited, Euronext in Brussels and the Swiss Exchange.