[ 2011-04-18 ]

Gold Fields acquires IAMGOLD’s 18.9% minority stake in Tarkwa and Damang gold mi
Johannesburg, 15 April 2011: Gold Fields Limited
(Gold Fields) (JSE, NYSE, NASDAQ Dubai: GFI) has
announced that it has entered into a binding
agreement with IAMGOLD Corporation to acquire its
18.9% minority stake in the Tarkwa and Damang gold
mines in Ghana, for a cash consideration of US$667
million.

Upon completion of the proposed acquisition, Gold
Fields will have increased its interest in each of
the Tarkwa and Damang gold mines from 71.1% to
90%, the remaining 10% interest being held by the
Government of Ghana. The completion of the
proposed acquisition, which is subject to certain
condition precedent being met, including Gold
Fields shareholders approval, is expected by 31
July 2011.

Upon completion of this transaction Gold Fields
will acquire:
an additional 181,000 ounces of annual production
at current cash costs of $540/oz and Notional Cash
Expenditure (NCE) of about $940/oz based on
results for the six months ended 31 December
2011;

an additional 2.14 million reserve ounces at a
cost of about $300 per ounce;

an additional 3.27 million resource ounces at a
cost of approximately US$198 per ounce;

a significant resource and reserve upside
potential, in particular at the Damang mine; and

US$20 million in working capital.


Commenting on the transaction, Peter Turner EVP
Gold Fields West Africa Region said: ‘This
transaction confirms the confidence that Gold
Fields has in the Ghanaian economy. Gold Fields is
proud of its leading role in the mi8ning industry
in Ghana. We will continue to engage with all
stakeholders to grow shareholder value’

Nick Holland, Chief Executive Officer of Gold
Fields, said:

“The two most important guiding principles of
our strategy are to grow our free cash flow by
growing our margin per ounce and by increasing
ounces produced on a per share basis. This
transaction meets those requirements.

“Through this transaction we will consolidate
our ownership in two world-class mines in a stable
and mining friendly jurisdiction where we have
been operating successfully for almost two decades
and have a strong brand.

“This is a low-risk acquisition of
‘in-production ounces’ generating healthy free
cash flow that will improve the overall quality of
our portfolio and be accretive to our shareholders
on a per share basis.

“This proposed acquisition, together with the
recent offer to the minority shareholders in our
Cerro Corona mine in Peru, are important steps
towards our objective of international
diversification, and will contribute meaningfully
to our target of growing our production base to
five million ounces, either in production or in
development, by 2015.”

As at 14 April 2011, Gold Fields’ economic
interest in Gold Fields La Cima, owners of Cerro
Corona, was 92.9% up from 80.7% before the offer
was made. The offer closes in Peru later today.

Source - GNA

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