JSE-listed Gold Fields has completed a joint venture (JV) transaction with Asanko Gold, giving it a 50% stake in Asanko’s 90% interest in the Asanko gold mine, in Ghana.
“The closing of the transaction with Asanko gives us exposure to a great camp with long-life, low-cost production, with significant exploration potential in a country we know well and have operated in for 25 years,” Gold Fields CEO Nick Holland said in a statement on Tuesday.
Upon closing of the transaction, Asanko Gold received $165-million from Gold Fields, which it has used to settle its debt with Red Kite.
“Today marks an important milestone for Asanko as we conclude our JV transaction with Gold Fields and emerge completely debt-free, with a strong partner, a solid long-life production base, competitive cost profile, fully funded organic growth and significant exploration potential,” Asanko Gold president and CEO Peter Breese commented.
The Asanko mine is expected to produce about 253 000 oz/y of gold between 2019 and 2023.