Yilgarn South Assets include Barrick’s Granny Smith, Lawlers and Darlot gold mines.

The acquisition provides the South African miner with a further 452,000oz of annual production, at an All-in sustaining cost (AISC) of US$1,137 per ounce; 2.6 million reserve oz at a cost of nearly $115 per oz; 1.9 million resource oz in addition to the reserve ounces.

Following the acquisition, Australia will be Gold Fields’ largest regional production centre with 42% of the company’s production.

Gold Fields chief executive officer Nick Holland said that the company can add value to the Yilgarn South Assets through the application of its proven low cost, free cash flow focussed operating model, which has been successful in repositioning Gold Fields’ Australian operations competitively on the cost curve.

"Our first priority after closing the deal is to determine the most appropriate way forward for each asset in our endeavour to maximise cash flow. We expect that it will take between 6 and 12 months to realise the full benefits of the acquisition," Holland added.

Completion of the proposed transaction is conditional on certain customary and regulatory conditions.