One of the world’s largest gold mining firms, Gold Fields plans to acquire half of Asanko Gold Inc’s Ghana Subsidiary as well as associated properties and exploration rights in the West African Country.
In support of the Joint Venture agreement with Asanko, CEO of Gold Fields, Nicholas Holland said that “West Africa is an important part for our business and we look forward to a long partnership with Asanko in Ghana,” Junior Mining Network reported.
The deal that is worth $202.6 million, also includes Gold Fields’ subsidiary acquisition of a 9.9 percent stake in Toronto-listed Asanko for $17.6 million in a share placement, as well as the South Africa-based miner’s acquisition of a 50 percent stake out of Asanko Gold Ghana’s 90 percent in the Canadian Miner.
“We view Asanko Gold Mine as a long quality Asset and a great addition to our existing portfolio of open pit gold operations in the country,” Holland added.
Payment arrangement for the just concluded deal includes an upfront payment of $165 million that is to be made on closure of the transaction and a deferred payment of $20 million.
While highlighting the significance of the Joint Venture, President and CEO of Asanko, Peter Bresse, noted that the “transaction presents a unique opportunity for Asanko to de-risk its future production targets whilst at the same time eliminates corporate debt.”
“We look forward to working in partnership with Gold Fields and sharing mining exploration expertise to create added value for all our stakeholders,” Breese added.
Asanko Gold Incorporation is to remain the Manager of Ghana’s Asanko Gold Mine, while a Management committee made up of representatives from each party will be formed to govern the operation and development activities of the Joint Venture.