Gold Fields has sold 9.9 per cent of its share in Gold Road Resources as part of a debt reduction strategy.
The South African company has capitalised on “significant gains” from its original investments in Gold Road in 2017 by selling the shares for $126.3 million.
Gold Fields said the sale followed positive investor feedback on other recent disposals of a 19.9 per cent shareholding in Maverix Metals, which sold for $US68 million ($100.6 million), and a 19.9 per cent shareholding in Red 5, which sold for $29.6 million.
It also reaffirmed that it remained fully committed to the 50 per cent interest in the Gruyere joint venture with Gold Road and has no intention of exiting that position.
As manager of the Gruyere project, Gold Fields advised that it was pleased that the ramp-up of the process plant was progressing well, with key milestones including the 96-hour continuous mill run are being met.
Gold Road said the share sale by Gold Fields would not impact on the standstill arrangement between the companies, in which Gold Fields and its affiliate must not acquire a relevant interest in any securities of Gold Road greater than 10 per cent unless agreed in writing.
Gold Road chairman Tim Netscher thanked Gold Fields for its equity investment in the company as it transitioned from “explorer to producer.”
“We look forward to continuing to grow value for all shareholders through the ongoing joint venture between Gold Road and Gold Fields at the world-class Gruyere project,” he said.
Gold Fields sold its shares at a price of $1.45, with the sale being conducted via an underwritten bookbuild process led by Macquarie Capital on behalf of Gold Fields.