Gold Fields offloads $126m Gold Road stake

Shares in Gold Road Resources have closed trade down 17.1 per cent, after its joint venture partner in the Gruyere gold project sold its 9.9 per cent stake in the company.

Gold Fields will receive $126.3 million after it sold its Gold Road shares at a price of $1.45 each.

South Africa-based Gold Fields said the sale was part of its debt reduction strategy, and followed other recent disposals.

It sold a 19.9 per cent shareholding in Maverix Metals for $100.6 million and a 19.9 per cent shareholding in Red 5 for $29.6 million.

However, despite the sale, Gold Fields said it would remain committed to its 50 per cent stake in the $621 million Gruyere project, which it operates.

Gruyere has an expected 12-year mine life, with plans to produce 300,000 ounces per annum on average.

First gold was poured at the project early last month.

Gold Road chairman Tim Netscher said the company was appreciative of Gold Fields’ equity investment in the company.

“We look forward to continuing to grow value for all shareholders through the ongoing joint venture between Gold Road and Gold Fields at the world-class Gruyere project,” he said.

Macquarie Capital was Gold Fields’ financial adviser in the sale.

Shares in Gold Road finished trade at $1.30 each.