Gold Road has entered a 50:50 joint venture partnership with Gold Fields to develop and operate the Gruyere Gold project in Western Australia.
The $350 million deal comprises $250 million to be payed at the completion of the transaction, and $100 million contributed by Gold Fields for initial funding requirements during the construction phase.
Gold Road’s owner’s team, which was established over the past 18 months, will be kept on to develop the project under Gold Fields’ management.
Gold Road will continue to manage the site during a transition period of up to six months post completion, after which Gold Fields will become the manager on a ‘no profit/ no loss’ basis.
The joint venture will also establish a Regional Co-operation Memorandum of Understanding (Regional MoU) that provides access to Gruyere’s upcoming processing plant and site infrastructure, which will enhance the options available for any future discoveries by Gold Road across its North Yamarna and 50 per cent owned South Yamarna tenements.
“This partnership further strengthens our strong balance sheet, allows us to significantly de-risk the Gruyere Gold Project, and enables us to pursue our growth plans much sooner than we may have under alternative funding options,” Ian Murray, Gold Roads managing director and CEO said.
Earlier this year Gold Road looked to purchase a second hand 600-person accommodation village at the site, following a grant of Miscellaneous Licenses from the Department of Mines and Petroleum.