Gold Road Resources is set to be bought by Gold Fields, its South Africa-based joint venture partner in the Gruyere gold mine in Western Australia (WA), with a scheme of arrangement taking legal effect on 26 September.
This scheme of arrangement enables Gold Fields to buy 100% of Gold Road shares via its subsidiary, Gruyere Holdings.
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The Supreme Court of WA approved the scheme and it was lodged with the Australian Securities and Investments Commission.
Following this, Gold Road shares were suspended from trading.
The present shareholders will receive a special dividend before the share transfer. The board of Gold Road has agreed to the distribution of A$0.43 ($0.28) per share to the full share register as of the close of business on 30 September. This special dividend is part of the scheme’s consideration.
The special dividend under the scheme consideration includes a fixed cash component of A$2.52 per share and a variable cash consideration of A$0.98 per share. This was calculated on 26 September based on Gold Road’s shareholding value in Northern Star Resources before the scheme took effect.
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By GlobalDataThe full implementation of the scheme and the transfer of Gold Road shares to Gold Fields is scheduled for 14 October.
With this deal, Gold Fields will gain full ownership of the Gruyere gold mine.
The acquisition was first proposed in May. The mine is expected to produce 325,000–355,000oz of gold in 2025.
Australia’s Foreign Investment Review Board approved the deal in May, with the Federal Government permitting Gold Fields to go ahead with its acquisition of Gold Road Resources for A$3.7bn.
