Wednesday, 11th August 2004 (2480 views)

Gold Fields has announced it has agreed to buy Canada's Iamgold Corp in a new stock swap.

The world's fourth largest gold producer will combine operations with the firm in a $2.1 billion deal.

The deal is the result of Gold Fields fending off a competing bid from Golden Star Resources Ltd.

According to Bloomberg, Iamgold said in a statement: "The board has determined that Gold Fields' transaction is the best alternative for shareholders and clearly superior to the Golden Star offer."

Assets outside South Africa will now be combined into a new firm Gold Fields International which is set to produce around two million ounces of gold next year and 2.4 million in 2007.

Future action planned includes an exploration venture in Ecuador and the development of a mine in Peru.

 

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