South African mining giant Gold Fields has spent $64.3 million to increase its stake in Perth-based Gold Road Resources to 10 per cent, as the two companies jointly develop the Gruyere project.
Gold Fields acquired the 74.8 million shares at a price of 86 cents each, representing a 27 per cent premium to Gold Road’s last closing price.
It follows news in December that Gold Fields had paid $350 million to acquire a 50 per cent stake in Gold Road’s Gruyere project, with terms of the joint venture including that Gold Fields acquires no more than 10 per cent worth of its joint venture partner’s issued share capital.
Gruyere is expected to cost $514 million to bring into production, with GR Engineering Services, MACA and Civmec last month winning contracts to carry out work at the project.
Shares in Gold Road were 6.9 per cent higher to 72.2 cents each at 11am.