Gold Fields sells noncore investments to pay down debt

By Sarah Lizee

Olympia, Wash., June 6 – Gold Fields Ltd. said it is paying down debt following the sale of its shareholdings in two of its noncore investments, Maverix Metals and Red 5, for combined proceeds of $88 million.

Both positions were sold at a significant premium to the look-through acquisition costs, according to a press release.

The sale of the Maverix shares, processed through a series of private market transactions over the past four weeks, raised C$91.4 million.

Gold Fields retains 4.13 million Maverix warrants, equivalent to a 3.68% interest in the company on a partially diluted basis.

In April, Gold Fields sold its 247 million shares in Red 5 at A$0.12 per share for a total consideration of A$29.6 million.

“One of our key objectives is to reduce the amount of debt on our balance sheet,” chief executive officer Nick Holland said in the release.

“In addition to the restructuring of Gold Fields' debt announced over the past few months, using the proceeds from the sales of our non-core investments to pay down debt will further improve liquidity.”

Gold Fields is a Johannesburg-based gold mining company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.