Gold Fields agrees to buy Gold Road Resources for A$3.7bn

Gold Road holders will receive A$3.40 a share in cash, made of A$2.52 fixed and a variable amount linked to Gold Road’s stake in Northern Star. The offer is a 43% premium to the undisturbed price and follows weeks of talks after a rejected first proposal. Gold Fields gains full ownership of the Gruyere mine, which it already operates with Gold Road.

Why it matters. Buying out a joint-venture partner is a classic way to capture synergies on a mine you already run.

Source

Mining Weekly

In the course

Module 9: The M&A process