Johannesburg, South Africa — MININGREVIEW.COM — 08 May 2009 – South African gold development company Aflease Gold Limited has announced that all conditions precedent to conclude its acquisition by ASX-listed Gold One International Limited have been met.
Revealing this in a statement issued here, the company explained that this meant that the last day to trade Aflease shares would be Friday 15 May 2009, and the share would be suspended before market opens on Monday 18 May 2009 – the same day on which Gold One would list on the JSE. Aflease’s listing on the JSE would in turn terminate on 25 May 2009.
“This is indeed fantastic news for Aflease and its shareholders, who have been incredibly supportive of this transaction” said Aflease CEO Neal Froneman. “I am confident that the support shown will be rewarded as we set upon a new strategic phase for the company” he added.
Aflease also announced that it had raised R44 million with selected investors, and was thus fully funded to complete the development of its flagship Modder East project in South Africa.
Aflease issued a total of 32.8 million shares at an average price of R1.34 to raise the necessary capital. As previously disclosed, the company required some R30 million, following earlier capital raises this year, in order to meet cash requirements for the final stage of the Modder East project.
“We were always confident that we could raise the necessary capital, even in tough markets” said Froneman. “However, I am delighted that we were able to achieve this capital raising so efficiently and well ahead of time, providing certainty and comfort to the operational team.”
In November 2008, Aflease announced that it needed a further R120 million in order to fully fund the Modder East project.
In March, Aflease revealed that through an innovative share swap transaction with Trinity
Asset Management (Pty) Limited, the company had raised R89 million. This, together with the most recent R44 million, meets the necessary capital requirements.