Gold Fields Limited has announced the sale of its palladium-rich, polymetallic Arctic Platinum Project (APP) in northern Finland.
The buyer is a Finnish subsidiary of private equity fund CD Capital Natural Resources Fund III (CD Capital), headquartered in London.
The purchase consideration comprises US$40 million cash and royalty (2% NSR (net smelter return) on all metals, with 1% capped at US$20 million and 1% uncapped).
The transaction, including full payment of the cash consideration, was completed today.
The sale includes all of the project assets for APP, including the Suhanko mining licence (and associated real estate), all other mining and exploration properties, project permits and all other project related assets.
Nick Holland, Chief Executive Officer (CEO) of Gold Fields, commented: “The divestment of APP is consistent with our strategy of divesting non-core assets, and reinforces the focus that Gold Fields continues to show in relation to its asset portfolio. We are pleased to have balanced the purchase price between up-front cash and continued long-term exposure through the royalty, and believe this to be a positive outcome for both parties.
CD Capital continues to build its own portfolio of development assets, and we have been impressed with their professional approach and commitment to the transaction and the project.
“We wish them every success in the development of the project.”
Gold Fields Limited is a globally diversified producer of gold with eight operating mines in Australia, Ghana, Peru and South Africa with attributable annual gold-equivalent production of approximately 2.2 million ounces.
A business desk report