Gold Fields partners with Osisko to develop Windfall project in Quebec, Canada

Gold Fields (GFI) announced a partnership with Osisko Mining (OBNNF) to develop and mine the world class underground Windfall Project in Quebec, 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 on the following key terms: Cash payment of C$300 million paid on signing; Cash payment of C$300 million payable on issuance of key permits by the Deputy Minister of Quebec’s Ministere de l’Environnement, de la Lutte contre les changements climatiques, de la Faune et des Parcs to the Partnership authorising the construction and operation of the Windfall Project; and 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 Quevillon district exploration camps, totaling approximately 2,400km2, 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 Quebec. 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.