[miningmx.com] — Gold Fields said on Tuesday it had offered to buy out the remaining shares of its Peruvian unit to boost the group’s total production of the precious metal.
The La Cima subsidiary runs the Cerro Corona gold and copper mine, which has gold-equivalent reserves of 5.3 million ounces.
The offer is for 8% of the common shares it does not already own and for 100% of the investment shares.
“If the offer is accepted in full, it gives us access to an additional 1 million ounces of long-life and low-cost reserves and an additional 76,000 ounces of gold-equivalent production a year,” CEO Nick Holland said in a statement.
Gold Fields said it would pay 4.20 Peruvian soles ($1.45) in cash for each common or investment share in La Cima. If the offer is taken up in full, the cost of the deal would amount to $420m.
The offer price is a premium of 32% over the current spot price per common share and a 36% premium over the current spot price per investment share.
