South African mining firm, Gold Fields Limited announced on Wednesday the sale of its 45 percent stakes in the Asanko gold mine in Ghana to TSX-listed joint venture partner Galiano Gold for a total consideration of 170 million U.S. dollars.
in addition, Gold Fields will receive a one percent net smelter royalty on future productions from the Nkran deposit, the main deposit at the mine.
Gold Fields and Galiano Gold owned 45 percent shares apiece in Asanko Gold, managed by Galiano with the government of Ghana holding the remaining 10 percent shares.
“We are pleased to have concluded this agreement with Galiano. It is clear that the committed path forward for the Asanko mine requires consolidated ownership. Gold Fields is pleased to realise value for its holding now, while providing flexibility to Galiano in the recapitalisation of the mine and resuming mining to maximise its prospects of success,” said Martin Preece, Gold Fields Interim CEO.
Preece added, “Divestment of our interest in Asanko is part of our ongoing disciplined portfolio management process and releases capital for deployment by the company in line with our other capital allocation priorities.”
The current transaction is expected to be completed during the first quarter of 2024, and is subject to some terms and conditions, including regulatory approval.
Gold Fields is a globally diversified gold producer with eight operations in Australia, South Africa, Ghana and Peru, with two additional projects in Canada and Chile.
In March, Gold Fields and AngloGold Ashanti agreed to merge their Tarkwa and Iduapriem mines in Ghana to create Africa’s biggest gold mine, which would produce 900,000 ounces annually over the first five years of the merger.
Ghanaian authorities are yet to give their blessing to the deal.