Gold Fields is buying half of Western Australian project Gruyere for A$350m (about R3.65bn) from Sydney-listed Gold Road Resources, it said on Monday morning. Joint-venture partner Gold Road Resources would also receive a 1.5% royalty on Gold Field’s share of production once mine production reached 2-million ounces. Gold Road Resources would receive A$250m on completion of contstruction, with the remaining A$100m dependent on meeting agreed construction targets, Gold Fields said in the statement. Gold Fields said Gruyere had reserves of 3.5-million ounces of gold with total resources of 6.2-million ounces. "Gold Road is pioneering development of Australia’s newest goldfield, the Yamarna Belt, 200km east of Laverton in Western Australia. Gold Road holds tenements covering 5,000km² in the region, which is historically underexplored and highly prospective for gold mineralisation," the company said in its statement.
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