JOHANNESBURG – Gold Fields is in the process of disposing its Western Australia mine to Perth-headquartered Red 5 Ltd for A$18.5 million ($15 million), the South African miner said on Thursday.
Gold Fields is selling the mine through a subsidiary and will receive A$12 million in cash and 130 million Red 5 shares in exchange for its Darlot mine, it said in a statement. The sale is expected to close at the end of September.
Red 5 is planning a cash call to fund the cash component and general working capital, with Gold Fields underwriting the rights issue up to A$7 million, the South African firm said.
Darlot was acquired by Gold Fields in 2013 and produced more than 241,000 ounces of gold in the past three years.