COMPANIES
G'Fields ups South Deep exposure
Posted Mon, 22 May 2006
Gold Fields has bought a further 18.27 million shares in Western Areas, for some R731-million, the group said on Friday.
According to the world's fourth largest miner, it had paid 40 rand per Western Areas share.
The group said it had acquired the additional stake in Western Areas in order to have more exposure to its South Deep mine, which according to chief executive officer Ian Cockerill, is a "very significant gold project".
His comments came despite the problems the mine has had in recent weeks, after a skip fell 1.6 kilometres down the main shaft, damaging the shaft and cutting the mine's production by half for the next nine to 12 months, Western Areas said.
Two weeks ago Western Areas announced that it was urgently starting a capital-raising exercise following the incident, in which no one was hurt.
Gold Fields now owns a total of 23.27 million shares, or just over 15 percent of Western Areas' total issued share capital.
Last month, rival
Harmony Gold bought a 29.2 percent stake in Western Areas from fund manager Allan Grey.
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