GOLD Fields said on Tuesday it had completed the sale of its stake in Asanko Gold Mine in Ghana to joint venture partner Galiano Gold.
The Johannesburg-headquartered group said in December it had agreed to sell its 45% stake in the mine for $170m in cash and shares. Gold Fields would also receive a royalty on future production from mining of Asanko’s Nkran deposit.
As per last year’s agreement, Gold Fields confirmed receipt of a first installment consisting of $65m in cash and 28.5 million shares in Galiano Gold, which is listed in Toronto. Shares in Galiano are currently trading at $1.16/share.
The balance of the consideration will be paid in stages with another installment of $25m to be paid on or before the end of 2025; another $30m by the end of 2026 and the royalty on production once more than 100,000 ounces of gold equivalent in produced from Nkran. The royalty payment is capped at 447,000 oz.
Gold Fields is also waiting on the approval of the Ghana government before finalising an earlier deal – a joint venture merging its Tarkwa mine with Iduapriem, a neighbouring mine owned by AngloGold Ashanti. The joint venture proposal, unfurled by the two companies in March, would create Africa’s largest gold mine, they said.
It is envisaged that Ghana’s government will take a 10% stake in the joint venture diluting Gold Fields and AngloGold to 60% and 30% respectively. However, approval for the joint venture has not yet been forthcoming.
The two operations produce 700,000 to 800,000 ounces a year and the joint venture will produce 900,000 oz annually.
