South African miner Gold Fields (NYSE, Nasdaq: GFI) has sold its stake of 27.8mn shares in Vancouver-based Eldorado Gold for US$293mn, the former said in a statement. The amount is 7.49% of the 371mn shares Eldorado had issued as of June 30. The company said it would use the proceeds of the sale to pay off debt.
Gold Fields said the transaction will not have any impact on a previous arrangement whereby the South African company agreed to sell its 19.9% stake in Australia's Sino Gold Mining (ASX: SGX) to the Canadian in order to allow a merger between Eldorado and Sino.
Eldorado has several projects worldwide, among them the Vila Nova iron ore deposit and an option with Brazauro Resources (TSX-V: BZO) to earn up to 75% in the Tocantinzinho gold project in Brazil. Gold Fields has the Cerro Corona producing yellow metal mine in Peru.
Publication: Business News Americas - English News
Provider: Business News Americas
September 8, 2009
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