Gold Fields Finalizes Sale of Stake in Ghanaian Gold Mine

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Gold miner Gold Fields, recognized as one of the leading global producers of the precious metal, has successfully completed a strategic transaction with Galiano Gold, effectively divesting its 45% interest in the Asanko gold mine located in Ghana. This significant move is part of Gold Fields’ broader strategy to optimize its portfolio and focus on core operations, while still benefitting from the mine’s future successes through a retained royalty interest.

The Asanko mine, situated in one of the world’s most prolific gold-producing regions, represents a substantial asset within the sector, having consistently demonstrated high production levels and significant exploration potential. The sale agreement sees Gold Fields receiving a combination of cash and equity, amassing a total value of $170-million. Specifically, the upfront proceeds for Gold Fields comprise $65-million in cash coupled with an impressive allotment of 28.5-million shares in Galiano Gold.

Furthermore, in a move to maintain a stake in the mine’s future prosperity, Gold Fields has negotiated a 1% net smelter royalty (NSR) on any future gold production emanating from the Nkran deposit within the Asanko mine. This NSR agreement illustrates Gold Fields’ confidence in the continuing productivity and exploration upside of the Asanko mine, ensuring the company benefits from any substantial gold discoveries and production enhancements in the years to come.

The divestment to Galiano Gold not only strengthens the financial position of Gold Fields by unlocking significant value from a non-core asset but also provides Galiano Gold with an opportunity to further enhance and develop the Asanko mine. With both companies boasting a strong track record of responsible and sustainable mining practices, this transaction is set to foster significant growth and continued success for the Asanko mine, benefiting both parties and contributing positively to Ghana’s mining industry.