Gold Fields Limited has entered into a binding agreement with Iamgold to acquire its 18.9% minority stake in the Tarkwa and Damang gold mines in Ghana, for a total value of $667m.

With this acquisition, Gold Fields interest in both the mines will increase from 71.1% to 90% and the remaining 10% interest will be held by the Government of Ghana.

The transaction is expected to be complete by 31 July 2011.

On completion of the transaction, Gold Fields will acquire an additional 181,000oz of annual production at current cash costs of $540/oz and Notional Cash Expenditure[1] of about $940/oz.

The company will also acquire an additional 2.14 million reserve ounces at a cost of $300/oz and an additional 3.27 million resource ounces at a cost of approximately $198/oz.