Gold Fields finally sells Arctic Platinum for USD40m cash

Abandoned mine in Northern Finland

© Valeriya Popova – 123RF.com

This includes a smelter royalty on all metal coming from the project.

Gold Fields, which had been looking to diversify its operations, launched the exploration project in Finland to define prospects for platinum group metals. However, the company deemed the economics of building a mine to be unfavourable and kept it mothballed as it sought a buyer.

The Finnish arm of London-based private equity group CD Capital Natural Resources Fund make the purchase, paying over the $40m in cash.

"The divestment of APP is consistent with our strategy of divesting non-core assets, and reinforces the focus that Gold Fields continues to show in relation to its asset portfolio," Gold Fields CEO Nick Holland said in a statement on Wednesday.

"We are pleased to have balanced the purchase price between up-front cash and continued long-term exposure through the royalty, and believe this to be a positive outcome for both parties," he said, referring to the 2% net smelter royalty once the metal comes into production.

Gold Fields has gold mines in SA, Ghana, Australia and Peru, with the latter being a copper and gold mine.

Source: BDpro