Gold Fields Sells 60% Stake in Essakane Project for US$200 Million and Acquires 12.2% Interest in Orezone Resources Inc.
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JOHANNESBURG, South Africa, November 27 -- Gold Fields Limited ("Gold Fields") (NYSE, JSE, DIFX: GFI) is pleased to announce the successful closing of the transaction announced on 10 October 2007, as a result of which Gold Fields sold its 60% stake in the Essakane Project located in Burkina Faso, West Africa to its partner in the project, Orezone Resources Inc. ("Orezone") (TSX:OZN), for a minimum total consideration of US$200 million.
Orezone paid Gold Fields US$150 million in cash and issued 41,666,667 common shares having an aggregate subscription price of US$50 million to its wholly-owned subsidiary Gold Fields Essakane (BVI) Limited ("Gold Fields Essakane"). Following the acquisition, Gold Fields owns 41,666,667 common shares of Orezone, representing 12.2% of Orezone's issued and outstanding common shares. Gold Fields acquired the common shares of Orezone for investment purposes and has no present intention of acquiring ownership of, or control over, additional securities of Orezone.
The Essakane Project is a late stage development project located in Burkina Faso, West Africa. A bankable feasibility study was recently completed which envisioned a surface mine/CIL operation processing an average of 5,400,000 tonnes per annum. The project has an indicated and inferred resource of 3.8 million ounces of gold at a 1.0 g/t cutoff and a contained reserve of 2.65 million ounces. The project will take 18 months to construct at a total capital cost of US$346 million, and first gold is expected to be poured by early 2010. Once operational, the mine will produce an average of 292,000 ounces of gold per annum.
Orezone is an explorer and emerging gold producer with a pipeline of advanced and grassroots projects in politically stable areas of West Africa. West Africa is one of the world's fastest growing gold producing regions.
Gold Fields Limited is one of the world's largest unhedged producers of gold with attributable production of 4.0 million ounces per annum, mineral reserves of 94 million ounces and mineral resources of 252 million ounces. The Group employs some 47,000 permanent employees across its operations and is listed on the JSE Limited South Africa (primary listing),the New York Stock Exchange (NYSE) and the Dubai International Financial Exchange (DIFX).
Source: Gold Fields Limited
Enquires:
South Africa
Nerina Bodasing
Tel: +27-11-644-2630
Fax: +27-11-484-0639
Nerina.bodasing@goldfields.co.za
