Corrs advises Gold Road on acquisition
Corrs Chambers Westgarth has guided Gold Road Resources in a proposed A$3.7 billion acquisition deal with Gold Fields, a globally diversified gold producer, which is set to enhance shareholder value for Gold Road while retaining exposure to gold prices through its Northern Star shareholding
Australia’s leading independent law firm, Corrs Chambers Westgarth, has provided legal counsel to Gold Road Resources Limited (Gold Road) regarding its proposed A$3.7 billion acquisition by Gold Fields Limited (Gold Fields). The deal involves Gold Fields taking over 100% of the issued share capital in Gold Road through a scheme of arrangement. Shareholders will receive fixed cash consideration of A$2.52 per share, adjusted for any special dividend paid before the scheme's implementation, along with a variable cash component that reflects the full value of Gold Road's proportionate stake in Northern Star Resources Ltd. Gold Road currently holds a 3.4% share in Northern Star, which acquired De Grey Mining Ltd in April 2025, a company where Gold Road previously owned an 18% stake.
Gold Fields, which is also Gold Road’s 50% joint venture partner and operator of the Gruyere Gold Mine in Western Australia—considered a Tier 1 gold mine—anticipates that the transaction will be completed in October this year. The move has been deemed significant, allowing Gold Road's shareholders to quickly benefit from the substantial value of Gruyere amid a favourable gold price environment.
Corrs’ involvement was led by partner Russell Philip, who noted, “We are delighted to have advised Gold Road on this significant transaction, which enables Gold Road shareholders to accelerate the realisation of the value of Gruyere in a strong gold price environment.” He further elaborated on the structure of the deal, explaining that “the fixed and variable nature of the cash consideration payable under the transaction ensures that Gold Road shareholders retain some ongoing exposure to the gold price up to completion of the transaction via Gold Road’s shareholding in Northern Star.”
The transaction also exemplifies Corrs' role as a trusted advisor in high-profile, significant mergers and acquisitions within the energy and resources sector, showcasing the firm's expertise in managing complex transactions that drive value for its clients.