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)

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