South Africa’s Gold Fields (JSE, NYSE: GFI) has resumed talks to acquire Australia’s Gold Road Resources (ASX: GOR), reviving a deal that was rejected in March. The miner confirmed Friday that it’s actively negotiating to buy 100% of Gold Road through an Australian scheme of arrangement — just hours after Gold Road’s shares were suspended from trading in Sydney.Gold Road had dismissed the first approach as “highly opportunistic” and claimed it undervalued the company. Price and timing were the key sticking points, chief executive Duncan Gibbs said at the time.Gold Fields had offered A$2.27 per share in cash, plus a variable component tied to Gold Road’s stake in De Grey Mining. In response, Gold Road proposed acquiring Gold Fields’ 50% stake in the Gruyere mine at a matching valuation. Gold Fields rejected that counter-offer and refused further talks on divesting its interest.Now, Gold Fields is back at the table, driven by its determination for full control of Gruyere — one of Western Australia’s largest gold mines. Gold Road discovered the deposit in 2013 and sold a 50% interest to Gold Fields in 2016 to fund development and exploration.Gruyere has produced over 1.5 million ounces since beginning operations in 2019. It delivered record output of nearly 92,000 ounces in the final quarter of 2024.Gold Fields cautioned there’s no guarantee a deal will materialize. That uncertainty pushed its Johannesburg-listed shares down as much as 6.4% Friday, though the stock was up 1.6% in pre-market trading in New York to $21.66.Gold Road’s shares, suspended early in the day due to “media speculation regarding a potential change of control transaction”, will remain trading when the market opens on May 6, unless the company issues an announcement before then.The bid comes amid a surge in gold prices and deal-making. With gold briefly topping $3,500 an ounce last month, the sector has seen a new wave of mergers and acquisitions. Recent deals include Equinox Gold’s (TSX: EQX) C$2.6 billion ($1.88 billion) acquisition of Calibre Mining in Canada, and China’s CMOC Group buying Lumina Gold for C$581 million.
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