Gold Fields exits Galiano Gold stake in C$151m deal
Gold major Gold Fields has divested its entire holding in Toronto-listed Galiano Gold, selling 50.47-million common shares in a C$151.4-million transaction.
The shares, representing about 19.5% of Galiano’s issued and outstanding equity, were sold on September 23 in a bought-deal block trade to BMO Capital Markets, Scotiabank and CIBC Capital Markets, at C$3.00 apiece.
Prior to the sale, 21.97-million shares were held by subsidiary Marsh Holdings and 28.5-million shares by Gold Fields Orogen Holding. Following the transaction, neither entity owns or controls any Galiano securities.
Gold Fields said the divestment was for investment management purposes. However, under a December 2023 share purchase agreement related to Galiano’s acquisition of Gold Fields’ 50% joint venture interest in the Asanko gold mine, Galiano may elect to issue shares in lieu of cash to settle a portion of deferred acquisition consideration. Should that occur, Gold Fields could regain a stake in the Canadian-listed company.
Gold Fields, headquartered in South Africa, operates nine mines across Australia, South Africa, Ghana, Peru and Chile, and has a development project in Canada.
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