Orezone (OZN.TO, OZN) gets Gold Fields' Essakane in Burkina Faso
Gold Fields Sells Stake
Charlotte Mathews, Resources Editor
Global gold producer Gold Fields has sold its stake in the potential Essakane gold mine in Burkina Faso.
Gold Fields sold the stake to its partner for a minimum of $200m because the project was not large enough to meet its objectives.
The group said yesterday it had sold its 60% stake to partner, Orezone Resources, for a mixture of cash and shares or cash only, as Orezone chose.
Gold Fields had spent $47m , which means it had made a significant return on its investment.
A feasibility study on Essakane has concluded it would cost about $346m to build a mine over 18 months which would produce about 292000oz of gold a year.
Gold Fields’ decision to exit appears surprising, as it set out plans in 2004 to add 1,5-million ounces of international gold production a year by 2009. It has still to find 600000oz to meet the target.
The group’s spokes-man, Willie Jacobsz, said Gold Fields’ 60% stake in Essakane would be diluted to 54% once the mine was built, as the Burkina Faso government would take a 10% share.
Gold Fields considered buying Orezone’s stake, but even that would not have brought Gold Fields’ share of production within its minimum requirement.
