Gold Fields has expressed disappointment at the Gold Road board’s decision to reject their proposal to fully acquire an interest in Gruyere, a low-cost, long-life-producing gold mine in Western Australia in which the latter holds a non-operating joint-venture interest.
It said Gold Road had not constructively engaged on key elements of the proposal, which would have allowed both parties to progress towards an outcome that would deliver compelling and certain value to its shareholders.
As part of its rejection of the proposal, Gold Road said it prefers to enter into an alternative transaction in respect of an acquisition of Gold Fields’ 50% interest in the Gruyere mine.
“We are disappointed that Gold Road’s board of directors has rejected our proposal,” said Gold Fields chief executive Mike Fraser.
“Gold Fields will continue to seek the engagement of the Gold Road board to consider the merits of the proposed acquisition and to advance the proposal.”
He said the consolidation of the remaining 50% interest in Gruyere would eliminate dis-synergies that arise through the current joint venture ownership.
The proposal to acquire Gold Road was for a cash consideration of A$3.05 per share as of 7 March 2025.
This consideration comprised a fixed portion of A$2.27 per share plus a variable portion equal to the value of each shareholder’s proportion of Gold Road’s shareholding in De Grey Mining.
Mathew Nyaungwa, Editor-In-Chief, Rough & Polished
