By: Mining technology

Gold Road Resources is set to be acquired by its South Africa-based joint venture partner, Gold Fields. The scheme of arrangement for the takeover took legal effect on September 26, following approval from the Supreme Court of Western Australia and lodgment with the Australian Securities and Investments Commission.

The scheme enables Gold Fields, through its subsidiary Gruyere Holdings, to buy 100% of Gold Road shares. Following the court approval, Gold Road shares were suspended from trading.

As part of the scheme's consideration, Gold Road's present shareholders will receive a special dividend before the share transfer. The board has agreed to distribute A$0.43 per share to the share register as of September 30. The total consideration includes a fixed cash component of A$2.52 per share and a variable cash consideration of A$0.98 per share.

The full implementation of the scheme and the transfer of Gold Road shares to Gold Fields is scheduled for October 14. With this deal, Gold Fields will gain full ownership of the Gruyere gold mine in Western Australia.

The acquisition, which was first proposed in May and later approved by Australia’s Foreign Investment Review Board, values Gold Road Resources at A$3.7bn. The Gruyere mine is expected to produce between 325,000 and 355,000 ounces of gold in 2025.