GOLD Fields has completed the $17.6m purchase of a 9.9% stake in Asanko Gold through a private placement of shares. The transactions precedes an agreement to form a 50:50 joint venture over the Asanko gold mine which is located near Gold Fields’ mines in Ghana.
As part of the private placement, Gold Fields has agreed not to increase its stake in the company beyond the current 9.9% position for a year, unless with the agreement of Asanko. In return Gold Fields has rights such that it will be allowed to participate in any subsequent rights or share issues in order to maintain its stake at the current level. Gold Fields bought 22.4 million shares at a price of 0.79 US cents per share.
Gold Fields announced on March 29 that it had agreed to buy a 50% stake in Asanko’s 90% share of its Ghana subsidiary, Asanko Gold Mines, for $165m. The mine produces about 200,000 ounces of gold a year from its mine in Ghana. Completion of the joint venture transaction is expected to occur before the end of the third quarter this year, Asanko said.
A $20m deferred payment will also be made once Esaase, a development project held by AGM, meets a production milestone, probably by 2019. Gold production is from Nkran and satellite deposits Akwasiso and Dynamite Hill.
