Gold Fields ditches Peru’s biggest metal firm

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JSE-listed gold miner, Gold FieldsJSE-listed gold miner, Gold Fields, said it would dispose its 51 percent controlling shareholding in Canteras del Hallazgo (CDH), firm that manages Chucapaca in southern Peru, for $81 million.
Gold Fields said it would sell this stake a joint venture partner in Chucapaca , Compañía de Minas Buenaventura (Buenaventura), Peru’s biggest listed precious metals firm.
Buenaventura would pay for the stake concurrently with the execution the agreement and a 1.5 percent net smelter royalty future sales gold, copper and silver produced in the current Chucapaca concession, Gold Fields said.[eap_ad_2]
Nick Holland, CEO of Gold Fields, said the royalty agreement gives Gold Fields future benefits. “We see Buenaventura, with its local expertise and experience, advancing this fairly quickly,” Holland said.
“The sale of our stake is in line with our strategy of focusing growing cash flow and moving away from greenfields exploration and new project development as a strategy for growth, in favour of the acquisition of in- ounces and near-mine exploration and development,” Holland added.
In June this year, Gold Fields sold its 85 percent interest in the Yanfolila project in Mali a London-listed Hummingbird Resources for $20 million in the form of Hummingbird shares. Earlier this year it also disposed of its interest in the Talas project in Kyrgyzstan.
Roque Benavides, CEO of Buenaventura, said Chucapaca offered a critical potential continue growing in terms of gold resources and future .
“This acquisition fits perfectly with Buenaventura’s expertise to underground mining operations that permit the maximization of shareholders’ value, adding precious metal resources to our portfolio,” Benavides said. (VENTURES AFRICA)[eap_ad_3]