Gold Fields sells majority stake in Peruvian project to Buenaventura

Gold Fields sells majority stake in Peruvian project to Buenaventura

Work at Chucapaca. (Image from archives)

South Africa’s Gold Fields (NYSE, JSE:GFI) continues to divest non-core assets with the sale of its 51% stake in an exploration project in Peru to partner Buenaventura (NYSE:BVN) for $81 million in cash plus royalty payments.

The southern Peru's Chucapaca gold, copper and silver deposit was originally planned to commence production by the end of 2015, mining 500,000 ounces of gold a year.

“This acquisition fits perfectly with Buenaventura’s expertise to develop [operation that] permit the maximization of shareholders’ value, adding precious metal resources to our portfolio,” said in a statement the chairman and CEO of Buenaventura Roque Benavides.

Buenaventura added that it would develop the deposit as an underground mine, instead of as an open-pit project that the two companies once deemed too costly.

Gold Fields previously put the cost of investing in Chucapaca at more than $1.2 billion.

The company is one of Peru's biggest precious metals mining companies. It also owns a 43.7% stake in Newmont Mining's (NYSE:NEM) aging Yanacocha gold mine in northern Peru.