JOHANNESBURG, South Africa, March 17 /CNW/ - Gold Fields Limited (Gold
Fields) (JSE, NYSE and DFIX: GFI) and Mvelaphanda Resources Limited (Mvela
Resources) (JSE: MVL) are pleased to announce that the parties have agreed
that Mvela Resources will receive 50 million Gold Fields shares if and when
Mvela Resources' future stake of 15% in GFI Mining South Africa (Proprietary)
Limited (GFIMSA) Limited is exchanged at the instance of either Gold fields or
Mvela Resources, for shares in Gold Fields. GFIMSA is the vehicle that owns
and houses the South African assets of Gold Fields.
The exact number of shares, within the range of the floor and cap (45 and
55 million shares respectively), which Mvela Resources would have received
should the exchange have been implemented in terms of current agreements, was
extremely volatile because of the input parameters for a Discounted Cash Flow
valuation, and the complex nature of the formula, and agreeing the number of
shares now gives certainty on an equitable basis to both parties.
Nick Holland, Chief Financial Officer of Gold Fields said: "We agreed on
50 million shares as it is the midway point between the floor and cap, and we
believe represents a fair deal."
Pine Pienaar of Mvela Resources said: "This arrangement will bring
certainty to the shareholders of Mvela Resources as to the size of our
potential future stake in Gold Fields."
For further information:
For further information: Enquiries: Gold Fields, Investors: Willie
Jacobsz, Mobile Number: +27-82-493-1377; Media: Reidwaan Wookay, Office
Number: +27-11-644-2665, Mobile Number: +27-82-878-4566; Andrew Davidson,
Office Number: +27-11-644-2638, Mobile Number: +27-82-667-7203; Mvelaphanda
Resources, James Wellsted, +27-11-325-5323, +27-83-453-4014