Gold Fields Limited announces a partnership with Osisko Mining Inc. to develop and mine the world class underground Windfall Project in Québec, Canada, now known as the Windfall Mining Group. Under executed and implemented transaction agreements, Gold Fields, through a 100% held Canadian subsidiary, has acquired a 50% interest in the feasibility stage Windfall Project (including exploration potential) on the following key terms:
a) Cash payment of C$300 million (c.US$220 million) paid on signing;
b) Cash payment of C$300 million payable on issuance of key permits by the Deputy Minister of Québec’s Ministère de l’Environnement, de la Lutte contre les changements climatiques, de la Faune et des Parcs (MELCCFP) to the Partnership authorising the construction and operation of the Windfall Project; and
c) 50/50 co-share of interim and construction capital expenditures.
Under the Partnership, Gold Fields has also acquired a 50% up-front vested interest in Osisko’s highly prospective Urban Barry and Quévillon district exploration camps, totaling approximately 2,400km2 (Exploration Properties), which will be co-explored and co-developed under the Partnership. In exchange, Gold Fields will fund the first C$75 million in regional exploration on those Exploration Properties over the first seven years of the Partnership. Thereafter, exploration spend will be shared 50/50.
This transaction constitutes a measured strategic entry into a sought after, Tier 1 mining jurisdiction, at an attractive valuation, underpinned by a world class near mine asset, with significant camp scale exploration potential. Gold Fields is excited to do so in partnership with an experienced operator in Osisko, who has already achieved great exploration success at Windfall and the Urban Barry camp, and who brings with them a successful track record and reputation of permitting, constructing, commissioning and operating Tier 1 assets in the province of Québec.
Under the Partnership structure, each of Osisko and Gold Fields respectively hold an effective 50% partnership interest in the Windfall Project and the Exploration Properties. Management and operatorship will be joint, and each partner holds a 50% interest in a newly incorporated company responsible for managing the operations of the Windfall Project and exploring the Exploration Properties for and on behalf of Gold Fields and Osisko. The management company will be governed by a Board of Directors comprising three directors nominated by Gold Fields and three directors nominated by Osisko.
Having carried out extensive due diligence, management interaction and site visits for just over a year,
Gold Fields believes the Windfall Project is on track to become a high-quality, low-cost underground gold mine with a relatively small surface footprint and considerable growth prospects along strike and
down plunge, well beyond delineated Mineral Reserves and the current 10 year projected mine life set out in Osisko’s December 2022 Windfall Feasibility Study.
Drawing on more than 20 years of successful brownfields exploration and reserve growth at its Western Australian operations, Gold Fields sees the potential for a similar path to emerge at the Windfall, Urban Barry and Quévillon belts. These gold belts bear striking similarities to Western Australia's highly productive greenstone gold belts and boast a growing number of exciting targets within Osisko’s extensive and underexplored land tenure.
To accelerate the next phase of discoveries, Gold Fields will fund the first C$75M over the next seven years, with the goal of fast-tracking exploration discovery and transitioning the Windfall, Urban Barry and Quévillon belts into premier, multi-decade mining operations. Property-wide regional and neardeposit exploration is already in progress, with 6 drills exploring targets developed by Osisko over the past 7 years, and include the Golden Bear, Fox and Shellian prospects. An initial exploration program developed by Osisko and Gold Fields includes $20 million dedicated to these and other targets in the coming 24 months.