South Africa's Gold Fields sells Asanko stake in $170 mln deal

Galiano Gold

21/12/2023 14:48

Dec 21 (Reuters) - South Africa's Gold Fields said on
Thursday it had agreed to sell its 45% stake in Ghana's Asanko
gold mine to joint venture partner Galiano Gold in a $170
million cash and shares deal. 
    Galiano  GAU.TO  already owns 45% of Asanko, which produced
170,000 ounces of gold in 2022 and is one of Ghana's biggest
gold mines. 
    Johannesburg-based Gold Fields  GFIJ.J  has been reviewing
its investment in Asanko, in which the government of Ghana holds
10%, saying it needs to fall under the control of one investor.
    "It is clear that the committed path forward for the Asanko
mine requires consolidated ownership, and Gold Fields is pleased
to realise value for its holding now," Gold Fields interim CEO
Martin Preece said in a statement.
    Gold Fields, which owns 9.8% of Galiano, will increase its
shareholding in the Canada-listed miner with additional shares
worth $20 million as part of the Asanko deal.
    Galiano said in a separate statement that the elimination of
the joint venture structure "will streamline operational and
financial decision making" at Asanko, its flagship asset.
    In March, Gold Fields and AngloGold Ashanti  ANGJ.J  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. 
    The proposed transaction is still under consideration by the
Ghanaian authorities.
    Ghana is currently the second biggest contributor after
Australia to the output of Gold Fields, which also has
operations in South Africa, Peru and Chile.          

 (Reporting by Nelson Banya; Editing by Alexander Smith)
 ((Nelson.Banya@thomsonreuters.com;))