Gold Fields eyes St. Helena mine

Gold Fields (GOLD-Q) plans to acquire all the outstanding shares of Johannesburg-listed St. Helena Gold Mines it does not already own.

The South African-based company hopes to acquire the shares (equivalent to a 45.8% interest) by offering one share of Gold Fields for every share of St. Helena.

St. Helena’s directors consider the proposed transaction “fair and reasonable,” and have recommended that shareholders vote in its favour. If 75% or more of the shareholders do so, Gold Fields will issue 4.4 million new shares, representing a 1% increase in outstanding shares to 452.8 million.

St. Helena operates a gold mine of the same name in South Africa’s Free State. In the fiscal year ended June 30, 1999, the mine produced 194,000 oz. at US$258 per oz.

In the first quarter of fiscal 2000 (that is, the period ended Sept. 30), Gold Fields earned US$3.4 million (or 5 cents per share). Gold production during the period totalled 963,000 oz. at an average cash cost of US$223 per oz.