Australia’s Gold Road will be purchased for $2.4 billion by South Africa’s Gold Fields

Gold Fields (GFIJ.J) in South Africa opens a new tab and will purchase As a wave of tie-ups is fueled by sky-high gold prices, Gold Road Resources (GOR.AX) announced on Monday that it has opened a new tab in a sweetened deal that values the Australian miner’s shares at A$3.7 billion ($2.39 billion).

The offer, which was made at a 14.5% premium to Gold Road’s most recent closing price, caused the company’s shares to rise as high as 12%.

Through the takeover, Gold Fields will be able to consolidate ownership of its joint venture with Gold Road to manage the low-cost, long-life Gruyere gold mine in Western Australia.

As mounting geopolitical uncertainties drive a record surge in the yellow metal, it is the third big deal in six months in a sector that is one of the world’s most active for mergers and acquisitions.

While Ramelius Resources announced it will acquire smaller peer Spartan Resources to form a combined A$4.2 billion group, Australian gold miner Northern Star Resources (NST.AX) announced in December that it would purchase De Grey Mining (DEG.AX) in an all-share deal valued at A$5 billion.

A$2.52 per share in fixed cash consideration and a variable cash component equal to the entire value of each shareholder’s investment in Northern Star Resources are what Gold Road shareholders would receive under the conditions published on Monday.

Gold Road rejected Gold Fields’ March offer of A$2.27 cash per share plus the variable cash component, seeing it as “highly opportunistic.”

The acquisition is worth A$3.40 per Gold Road share as of Friday’s closure.

A request for comment on Monday outside of regular business hours was not immediately answered by Gold Fields, which stated on May 2 that it was in ongoing talks with Gold Road.