Gold Fields Agrees to Joint Venture With Osisko for Canadian Gold Project
By Anthony O. Goriainoff
Gold Fields said Tuesday that it has partnered with Osisko Mining to develop the underground Windfall project in Quebec, Canada.
The South African gold miner said that under the agreement it has acquired a 50% interest in the project's feasibility stage which includes exploration potential. It said it will pay around 300 million Canadian dollars ($221.5 million) on signing and a further C$300 million payable on issuance of key permits authorizing the construction and operation of the Windfall project by Quebec's environmental ministry.
The miner said the agreement foresees a 50-50 coshare of the project's construction and capital expenditures. It will also see Gold Fields acquiring a 50% up-front vested interest in Osisko's Urban Barry and Quevillon district exploration camps, which will be coexplored and codeveloped under the partnership, the company said.
The miner will fund the first C$75 million in regional exploration on those properties over the first seven years of the partnership, it said, after which exploration spend will be split 50-50.
The company said the transaction won't hurt dividend payouts.
"We have actively reviewed a range of opportunities to gain exposure to the prolific Abitibi region and believe that this deal is the opportunity which meets our requirements," Chief Executive Martin Preece said.
Write to Anthony O. Goriainoff at anthony.orunagoriainoff@dowjones.com
(END) Dow Jones Newswires
May 02, 2023 07:47 ET (11:47 GMT)
Copyright (c) 2023 Dow Jones & Company, Inc.-
AI Is Booming, but Consumer Spending Is Slowing. Which Will Prevail in the Stock Market?
-
What’s Happening In the Markets This Week
-
Is the Era of Volatility-Suppressing Policies Possibly Over?
-
5 Undervalued Stocks That Crushed Earnings for Q1 2024
-
What Does Nvidia’s Stock Split Mean for Investors?
-
After Earnings, Is Home Depot Stock a Buy, a Sell, or Fairly Valued?
-
After Earnings, Is Baidu Stock a Buy, a Sell, or Fairly Valued?
-
Why Stocks Are Hitting Record Highs—and What Could Send Them Back to Earth
-
2 Wide-Moat Stocks to Consider
-
Live Nation: Breakup Sought by Department of Justice Probably Wouldn’t Affect Fair Value Much
-
After Earnings, Is Applied Materials Stock a Buy, Sell, or Fairly Valued?
-
The Best Energy Stocks to Buy
-
Snowflake Earnings: Mixed News, But Signs of Stability
-
Nvidia Earnings: AI Demand Smashes Expectations Again
-
After Earnings, Is Walmart Stock a Buy, a Sell, or Fairly Valued?
-
Target Earnings: Margins Hold Up, but Top Line Constrained by Weak Discretionary Spending