Gold Road Resources is set to be acquired by its joint venture partner Gold Fields, with a scheme of arrangement having taken legal effect on September 26.
The scheme allows for the South Africa-based Gold Fields to take on 100 per cent of Gold Road shares through its subsidiary Gruyere Holdings. The scheme was approved by the Supreme Court of WA and became legally in effect when those court orders were lodged with the Australian Securities and Investments Commission.
Gold Road shares were suspended from trading shortly after.
Current shareholders will receive a special dividend before the transfer takes place. The Gold Road board has agreed to distribute $0.43 per share to the full share register as it stands at the close of business on September 30.
This special dividend is part of the consideration laid out in the scheme. This will include a total fixed cash component of $2.52 per share, and a further variable cash consideration of $0.98 per share.
This was calculated on September 26 based on the value of Gold Road’s shareholding in Northern Star Resources immediately prior to the scheme taking effect.
Full implementation of the scheme consideration, and transfer of Gold Road shares to Gold Fields, will take place on October 14.
Gold Fields is a 50-50 joint venture partner with Gold Road on the Gruyere gold mine in Western Australia. The acquisition, first proposed in May this year, gives Gold Fields full ownership of the mine, which is expected to produce 325,000 to 355,000 ounces of gold in 2025.
The deal was approved in May by Australia’s Foreign Investment Review Board (FIRB), with the Federal Government clearing Gold Fields to proceed with its $3.7 billion acquisition of Gold Road Resources.
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