Johannesburg, South Africa — MININGREVIEW.COM — 04 June 2009 – Gold Fields Limited – Africa’s second- largest miner of the metal – has agreed to sell its 19.9% stake in Sino Gold Mining Limited to the Eldorado Gold Corporation for about US$282 million (R2.26 billion) in stock.
In a statement released here, Gold Fields said Eldorado would exchange 48 of its shares for every 100 shares of Sino Gold. That would give the South African company 27.8 million shares in Vancouver-based Eldorado, or a stake of about 7%.
Gold Fields – whose foreign activities focus on West Africa, South America and Australasia – said it would retain some Chinese exploration joint ventures with Sydney-based Sino Gold under the agreement. Production of the precious metal in China increased 7.5% in this year’s first two months, according to government figures released in April.
“The accord has enabled us to crystallise the value of our investment while retaining exposure to China as a potential area for the future,” Gold Fields CEO Nick Holland said in the statement. “The company’s production goal of 1 million ounces a year in its three international regions within five years remains intact,” he added.
“The transaction requires approval from the South African Reserve Bank and other regulators, and probably will close at the end of August,” the company said.
Macquarie Capital Markets Canada Limited is its financial adviser on the transaction, Eldorado said in a Market Wire statement. Gold Fields named no adviser at this stage.