Gold Fields, Iamgold To Swap International Assets

South African gold-mining company Gold Fields Ltd. said Wednesday it is to combine its international assets with Canadian gold-mining company Iamgold Corp., working in southern Africa, in a stock swap the companies of approximately $2.1 billion worth.

Under the agreement, the international assets of Gold Fields outside of its base in southern Africa will be merged with Iamgold in exchange for approximately 351.7 million Iamgold shares.

Following the transaction, Gold Fields will own about 70 percent of the new company while Iamgold shareholders will own 30 percent and receive a special cash dividend of 50 Canadian cents, or about 38 U.S. cents, per-share.

The companies said the deal will create the fourth-largest North American gold producer and the seventh-largest producer worldwide.