South African top-10 gold miner Gold Fields has announced plans to acquire Gold Road Resources, its Australian 50:50 joint venture partner in the Gruyere gold mine.
If the deal is successful, Gold Fields will gain full control of the Gruyere project, which it currently operates. The mine is expected to produce between 325,000 and 355,000 ounces of gold in 2025. Gruyere is a low-cost gold project in Western Australia with a long-term mine plan.
The Gold Road board has unanimously recommended shareholders vote in favour of the deal. Gold Fields said the company’s offer is its “best and final” and there is no intention to increase it. In March, Gold Fields made an initial bid of A$3.3 billion ($2.14 billion), but it was rejected. The deal between the two Western Australian gold mining partners is now valued at A$3.7 billion ($2.4 billion).
The purchase of Gold Road will allow Gold Fields to consolidate the Gruyere mine in Australia and gain access to nearby exploration projects, in particular Gold Road’s Yamarna mine, 60 km southwest of Gruyere. In total, Gold Road’s resources, including its stake in Gruyere and other projects, are estimated at 1.92 million ounces.
The deal is subject to approval by Gold Road shareholders. A vote is scheduled for September. If successful and all other conditions are met, the acquisition is expected to close in October.
Hélène Tarin, Editor-in-Chief of the Asian Bureau, Rough&Polished
