Diversified gold producer Gold Fields has partnered with TSX-listed Osisko Mining to develop and mine the Windfall project, in Québec, Canada. The agreement between the companies, with the joint venture (JV) to be called the Windfall Mining Group, involves Gold Fields acquiring a 50% interest in Windfall through a wholly-owned Canadian subsidiary.
Gold Fields has paid a $220-million, or C$300-million, cash consideration on signing, and will pay another $220-million on the issuance of key permits by the Canadian authorities for the project to be built and operated.
Osisko and Gold Fields will each incur 50% of the interim and construction capital expenditures on the project, and jointly undertake management and operatorship of the project.
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 ten year projected mine life.