The deal is set to complete in October
Corrs Chambers Westgarth has guided Gold Road Resources Limited as internationally diversified gold producer Gold Fields Limited seeks to acquire it for $3.7bn.
The deal is set to complete in October. Through the scheme of arrangement deal, Gold Fields will snap up all of Gold Road’s issued share capital for a fixed cash consideration of $2.52 per share (minus special dividends paid before the scheme’s implementation) and a variable cash component equal to the full value of each Gold Road shareholders’ proportionate holding in Northern Star Resources Ltd.
Gold Road has a 3.4% interest in Northern Star after the latter acquired De Grey Mining Ltd last month. Gold Road previously held an 18% interest in De Grey Mining.
Gold Road and Gold Fields are joint venture partners in the WA-situated Tier 1 gold mine Gruyere Gold Mine. Gold Fields operates the mine.
“We are delighted to have advised Gold Road on this significant transaction, which enables Gold Road shareholders to accelerate the realisation of the value of Gruyere in a strong gold price environment”, Corrs lead partner Russell Philip said. “The fixed and variable nature of the cash consideration payable under the transaction ensures that Gold Road shareholders retain some ongoing exposure to the gold price up to completion of the transaction via Gold Road’s shareholding in Northern Star”.
Philip worked alongside several Corrs experts to advise Gold Road on all aspects of the deal.
