Gold Fields makes second payment to Lepanto

MANILA, Philippines - Gold Fields Switzerland has made a second payment of $66 million to Lepanto Consolidated Mining Co. and Liberty Express Assets to maintain its 18-month option for the purchase of up to a 60 percent stake in Lepanto’s Far Southeast Gold Resources, Inc. (FSGRI) project.

Under an agreement signed on Sept. 20, 2010, Gold Fields paid $10 million in option fees to Lepanto and a $44-million non-refundable downpayment to Liberty to conduct a drilling program to verify the mineral resources of the FSGRI project.

If after 12 months Gold Fields decides to pursue the opportunity, it will pay a further non-refundable $66 million to Liberty with a final payment of $220 million when the option period expires.”

The 18-month option will end on March 20, 2012.

The price for 60 percent of FSGRI is $340 million.

Gold Fields Philippines Corp. president and chief executive officer Brett Mattison had said that Gold Fields would wait until March 20 next year before making a final decision whether a not the company would exercise its option.

In an interview with The STAR, Mattison said that Gold Fields Switzerland is looking to acquire Lepanto’s 20 percent and Liberty’s 40 percent stakes in FSGRI.

Jasareno revealed that Gold Fields is now actively “moving” on its planned investments in the Philippines.