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Gold Fields Ltd buys Barrick Gold's Australian assets

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(Credit: Reuters) Image shows the logo of Gold Fields Ltd.Gold Fields Ltd
August 22
5:36 AM 2013

Gold Fields Limited had said today that it would buy the Australian assets of Barrick Gold Corp. The binding sale and purchase agreement covered the latter's Western Australian interests in the gold mines at Granny Smith, Lawlers and Darlot in Western Australia. The acquisition amount was pegged at USD 300 million. The price tag would still be subject to working capital adjustments of up to USD 30 million.

Upon completion of the sale, Australia would comprise 42% of Gold Field's total production. The Johannesburg-based mining group has mines in Ghana, Peru and South Africa. The acquisition would boost the annual production of Gold Fields to 452,000 ounces. It would also increase its reserves to 2.6 million ounces, with an additional 1.9 million resource ounces.

In a statement, Gold Fields Chief Executive Officer Nick Holland said that the purchase was in line with his company's strategy and focus. "We see a clear path to value and, once fully integrated, these assets are expected to have a positive impact on Gold Fields' production, free cash flow and global credit rating," he added.

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