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Gold Road strikes $350m JV deal with Gold Fields over Gruyere - Western Australian

Monday, 7 November 2016

Under the terms of the joint venture arrangement, Gold Fields will take a 50 per cent stake in the project in exchange for the cash and a 1.5 per cent net smelter royalty to Gold Road.

The deal provides Gold Road with the funds to pay for its half of an estimated cost of $507 million to develop Gruyere and bring it into production.

The joint venture will target construction start for early next year.

The deal will also allow Gold Road to accelerate exploration activities across both its 100 per cent-owned North Yamarna tenements and its 50 per cent-owned South Yamarna tenements.

Gold Road said the financial flexibility afforded by the transaction might also allow the company to consider future capital management initiatives.

Gold Road managing director and chief executive Ian Murray said he was pleased to announce Gold Fields as the company’s chosen joint venture partner and looked forward to a long and successful partnership.

“The highly experienced Owner’s Team that we have established over the past 18 months will be the team that will develop the Gruyere Gold Project under the guidance and leadership of Gold Fields,” he said.

“This partnership further strengthens our strong balance sheet, allows us to significantly de-risk Gruyere and enables us to pursue our growth plans much sooner than we may have under alternative funding options.”

Gold Fields chief executive Nick Holland said Australia was a key part of the business and the company’s largest cash generator.

“This deal enhances our portfolio and expands our exposure to a new and emerging goldfield in WA,” he said.

“We are excited about partnering with Gold Road and are hopeful this is the start of a multi-decade, mutually beneficial relationship and see significant potential synergies in resourcing, intellectual property, procurement and technical skills.”

The deal is subject to approval by the Foreign Investment Review Board.

Gold Road shares were in a trading halt having last changed hands for 63 cents.

Gold Road strikes $350m JV deal with Gold Fields over Gruyere - Western Australian

Monday, 7 November 2016

Under the terms of the joint venture arrangement, Gold Fields will take a 50 per cent stake in the project in exchange for the cash and a 1.5 per cent net smelter royalty to Gold Road.

The deal provides Gold Road with the funds to pay for its half of an estimated cost of $507 million to develop Gruyere and bring it into production.

The joint venture will target construction start for early next year.

The deal will also allow Gold Road to accelerate exploration activities across both its 100 per cent-owned North Yamarna tenements and its 50 per cent-owned South Yamarna tenements.

Gold Road said the financial flexibility afforded by the transaction might also allow the company to consider future capital management initiatives.

Gold Road managing director and chief executive Ian Murray said he was pleased to announce Gold Fields as the company’s chosen joint venture partner and looked forward to a long and successful partnership.

“The highly experienced Owner’s Team that we have established over the past 18 months will be the team that will develop the Gruyere Gold Project under the guidance and leadership of Gold Fields,” he said.

“This partnership further strengthens our strong balance sheet, allows us to significantly de-risk Gruyere and enables us to pursue our growth plans much sooner than we may have under alternative funding options.”

Gold Fields chief executive Nick Holland said Australia was a key part of the business and the company’s largest cash generator.

“This deal enhances our portfolio and expands our exposure to a new and emerging goldfield in WA,” he said.

“We are excited about partnering with Gold Road and are hopeful this is the start of a multi-decade, mutually beneficial relationship and see significant potential synergies in resourcing, intellectual property, procurement and technical skills.”

The deal is subject to approval by the Foreign Investment Review Board.

Gold Road shares were in a trading halt having last changed hands for 63 cents.


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