Gold Fields partners Osisko in Canadian joint venture

Pan American Silver

02/05/2023 14:27

May 2 (Reuters) - South Africa's Gold Fields  GFIJ.J 
said on Tuesday it was setting up a joint venture with Osisko
Mining  OSK.TO  to develop the Windfall gold mining project in
Canada.
    The investment gives Gold Fields an entry point into the
Canadian mining sector, which it has coveted for years. 
    Gold Fields said it would pay an initial C$300 million
($220.85 million) to acquire 50% of the project, with an
additional C$300 million payable once the Canadian government
has issued construction and operating permits.
     The initial C$300 million was funded through existing cash
reserves and debt facilities, the company said.
    Gold Fields missed out on a Canadian asset last November
when its bid to acquire Yamana Gold   AUYN.MX  was hijacked by
Agnico Eagle  AEM.TO  and Pan American Silver Corp  PAAS.TO .
    Gold Fields interim CEO Martin Preece said the company had
scoured a range of opportunities in Canada's Abitibi region,
before settling on Windfall.
    “We are very pleased to be partnering with Osisko to bring
the high-quality Windfall Project into production and believe
that this will be the first mine of several in this partnership
in a highly prospective region," Preece said in a statement.
    Gold Fields said a feasibility study had showed the Windfall
project would have an initial mine life of 10 years, producing
an average 294,000 ounces annually, which would potentially put
it among Canada's 10 biggest gold mines. 
    On March 16, Gold Fields and AngloGold Ashanti  ANGJ.J 
announced a deal to merge their neighbouring Tarkwa and
Iduapriem mines in Ghana to create Africa's biggest gold mine. 
    Following its failure to acquire Yamana, Gold Fields has
said it would no longer seek big mergers and acquisitions, but
would pursue incremental growth through targeted asset
purchases.   
    
($1 = 1.3584 Canadian dollars)

 (Reporting by Nelson Banya; Editing by Susan Fenton)
 ((Nelson.Banya@thomsonreuters.com;))