South African mining giant Gold Fields has acquired a 40 per cent interest in the gold-copper Far Southeast Project in the Philippines, it has been announced.
In September 2010, Gold Fields entered into two option agreements with Lepanto Consolidated Mining Company, which owns 60 per cent of Far Southeast; and Liberty Express Assets, which owns 40 per cent. The agreements granted Gold Fields an option to acquire a 60 per cent interest in Far Southeast for a total of $340 million.
After making two down-payments of $44 million and $66 million in September 2010 and September 2011 respectively, Gold Fields has decided to bring forward half of the remaining $220 million payment to acquire Liberty’s 40 per cent interest.
Gold Fields continues to hold its option to acquire an additional 20 per cent stake from Lepanto for a further $110 million.
Far Southeast is located in the northern part of Luzon, the largest island in the Philippines. The project is situated in an existing mining camp close to two other mines historically operated by Lepanto, one of which is currently in production.
Far Southeast has access to established infrastructure, including roads, tailings facilities, power and water.
Nick Holland, CEO of Gold Fields, commented: “We are extremely pleased that we now own a 40 per cent interest in Far Southeast, not just an option. The positive drilling results have given us the confidence to show our commitment to the project and the Philippines.”
Gold Fields is one of the world’s largest unhedged producers of gold, with attributable annualised production of 3.5 million gold equivalent ounces from eight operating mines in Australia, Ghana, Peru and South Africa.
Gold Fields has total attributable gold equivalent mineral reserves of 76.7 million ounces and mineral resources of 225.4 million ounces.
