South Africa-headquartered Gold Fields has agreed to divest its 45% shareholding in the Asanko gold mine in Ghana to joint venture partner Galiano Gold for a total consideration of $170m.

The two companies currently hold 45% stake each in Asanko mine, while the remaining 10% is with the Government of Ghana.

As agreed, Galiano will pay the consideration in a combination of upfront, deferred and contingent payments.

This will include $65m in cash and $20m in Galiano shares at completion, following by two deferred payments of $25m and $30m on 31 December 2025 and 31 December 2026, respectively.

Additionally, Gold Fields will receive $30m and a 1% net smelter royalty once more than 100koz of gold equivalent is produced from the Nkran deposit.

As part of the deal, Gold Fields’ shareholding in Galiano will increase from 9.8% to 19.9%.

Gold Fields Interim CEO Martin Preece said: “We are pleased to have concluded this agreement with Galiano. It is clear that the committed path forward for the Asanko mine requires consolidated ownership.

“Gold Fields is pleased to realise value for its holding now, while providing flexibility to Galiano in the recapitalisation of the mine and resuming mining to maximise its prospects of success.

“Divestment of our interest in Asanko is part of our ongoing disciplined portfolio management process and releases capital for deployment by the company in line with our other capital allocation priorities.”

The deal is expected to be completed during the first quarter of 2024, subject to customary closing conditions including regulatory approvals.

The Asanko Gold Mine has four main open-pit mining areas- Abore, Miradani North, Nkran and Esaase.

It commenced production in 2016. Last year, the mine produced 170,342 ounces.