Gold Road Resources Ltd
(ASX:GOR) has completed the sale of its 50% stake in the Gruyere Gold Project for $250 million in cash.
The company sold its stake to Gold Fields Ltd and has now formed a 50:50 joint venture in the project with that company.
In addition to the cash payment, Gold Road Resources will also receive an uncapped 1.5% net smelter return royalty on Gold Fields’ share of production from the Gruyere Joint Venture – once total gold production exceeds 2 million ounces.
Gold Fields will also pay an additional $100 million to Gold Road by funding Gold Road’s share of the initial cash calls during the construction phase.
Gold Road Resources declared a net loss of $9.2 million at 30 June 2016.
