By: Creamer media

The FIRB approval satisfies a key condition of the transaction announced earlier this month, under which Gold Fields will acquire all outstanding shares in Gold Road through a scheme of arrangement.

The transaction will give Gold Fields full ownership of the Gruyere gold mine in Western Australia – a joint venture it currently operates with Gold Road – and adds the Yamarna exploration portfolio to its books.

Gold Road shareholders are set to receive A$3.40 a share in cash, comprising a fixed portion of A$2.52 and a variable component tied to Gold Road’s shareholding in Northern Star Resources. The offer includes a fully franked special dividend of about A$0.35 a share, which will be deducted from the fixed cash portion.

The scheme remains subject to Gold Road shareholder and court approval, an independent expert’s assessment that the deal is in shareholders’ best interests, and other customary conditions. A shareholder meeting is expected to be held in September.

If successful, the deal will see Gold Road delisted from the ASX and absorbed into Gold Fields’ global operations.