Gold Fields sells stake in Peru’s Chucapaca project - CNBC Africa

Gold Fields sells stake in Peru’s Chucapaca project

Southern Africa

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Gold Fields is a gold mining company headquartered in South Africa. PHOTOS: Getty Images

“We are pleased to have agreed terms with Buenaventura to sell our controlling stake in Chucapaca. The royalty agreement provides us with future upside, as we see Buenaventura, with its local expertise and experience, advancing this project fairly quickly,” Nick Holland, CEO of Gold Fields, said in a statement.

Canteras del Hallazgo is the firm that manages the Chucapaca project in Southern Peru. Gold Fields will sell the stake to Compañía de Minas Buenaventura S.A.A, also known as Buenaventura.

[DATA GFI:Gold Fields] is a gold mining company headquartered in South Africa and is listed on the Johannesburg and New York Stock Exchanges. The Chucapaca project is a gold, copper and silver deposit in Peru.

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The agreed sale price of the stake has been reported at 81 million US dollars and will be paid by Buenaventura, Gold Fields’ joint venture partner of the project.

Roque Benavides, chairman and CEO of Buenaventura, explained that the project however remains in line with plans to increase gold production.

“This acquisition fits perfectly with Buenaventura’s expertise to develop underground mining operations that will permit the maximization of shareholders’ value, adding precious metal resources to our portfolio,” said Benavides.

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The sale of the Chucapaca project is on the back of other sales Gold Fields executed this year, which include the sale of its 85 per cent interest in the Yanfolila project in Mali, as well as the disposing of its interest in the Talas project in Kyrgyzstan.

“The sale of our stake is in line with our strategy of focusing on growing cash flow and moving away from greenfields exploration and new project development as a strategy for growth, in favour of the acquisition of in-production ounces and near-mine exploration and development,” Holland explained.