Gold Fields Limited has announced the divestment of its 45% shareholding in the Asanko gold mine in Ghana to its joint venture partner Galiano Gold.
The total consideration for the divestment is $170 million. Gold Fields will also receive a 1% net smelter royalty on future production from the Nkran deposit, the primary deposit at the mine.
The transaction involves a combination of upfront, deferred, and contingent consideration. The divestment aligns with Gold Fields’ strategy to focus on its core assets and maximize shareholder value.
The transaction will be settled by Galiano to Gold Fields through a combination of upfront, deferred and contingent consideration as follows:
- $85m which will be settled with US$65m in cash and US$20m in Galiano shares on completion of the transaction;
- $25m to be paid on December 31,2025;
- $30m to be paid on December 31, 2026; and
- $30m plus a 1% net smelter royalty to be paid once more than 100koz of gold equivalent is produced from the Nkran deposit. The royalty is capped at a volume of 447koz.
Gold Fields Limited has announced the divestment of its 45% shareholding in the Asanko gold mine in Ghana to its joint venture partner Galiano Gold for a total consideration of $170 million. As part of the transaction, Gold Fields will also receive a 1% net smelter royalty on future production from the Nkran deposit, the main deposit at the mine.
Martin Preece, Gold Fields Interim CEO, commenting on the divestment said “We are pleased to have concluded this agreement with Galiano. It is clear that the committed path forward for the Asanko mine requires consolidated ownership. Gold Fields is pleased to realise value for its holding now, while providing flexibility to Galiano in the recapitalisation of the mine and resuming mining to maximise its prospects of success”.
“Divestment of our interest in Asanko is part of our ongoing disciplined portfolio management process and releases capital for deployment by the Company in line with our other capital allocation priorities,” Mr. Preece added.
The transaction, subject to regulatory approvals and other customary closing conditions, is expected to be completed in the first quarter of 2024. Gold Fields is a globally diversified gold producer with operations in Australia, South Africa, Ghana, Peru, Canada, and Chile.