Gold Fields has acquired a 40% stake in the gold-copper far Southeast project in the northern part of Luzon, Philippines by making the final payment of $110m, as per an agreement signed in September 2010.
Gold Fields earlier inked two option agreements with Lepanto Consolidated Mining Company, 60% owner of Far Southeast, and Liberty Express Assets with a 40% stake, to acquire a 60% interest in Far Southeast for a total amount of $340m.
The entire cost of the 40% stake is $220m and already two payments of $44m and $66m were made by the company in September 2010 and September 2011 respectively.
Gold Fields said it will hold its option to acquire an additional 20% stake in Far Southeast for an additional $110m, after the Financial or Technical Assistance Agreement will be been obtained, expected in the second half of 2012.
Gold Fields also expects to have a maiden Resource statement for Far Southeast and commence a pre-feasibility study later this year.
Far Southeast project is situated in an existing mining camp near two other mines operated by Lepanto, one of which is currently in production, and has demonstrated significant upside to the resource potential in the due diligence results.