HomeGoldAflease merger a step closer

Aflease merger a step closer

Sunset over Aflease’s
flagship Modder East
Johannesburg, South Africa — MININGREVIEW.COM — 21 April 2009 – Gold junior miner Aflease Gold (AFO) has confirmed that the company’s bondholders have approved the transaction which will complete its merger with Australian Stock Exchange-listed BMA Gold to form Gold One.

In a statement to the JSE, Aflease Gold explained that the approval provided for the dual primary inward listing of the ASX-listed Gold One International – previously known as BMA Gold – on JSE, and the subsequent acquisition by Gold One of all the issued ordinary shares of Aflease.

It added that the transaction would be implemented in South Africa through a scheme of arrangement between the company and its ordinary shareholders, and in terms of the scheme the Aflease convertible bonds would be cancelled and replaced with Gold One convertible bonds.

The company now anticipates that the dual primary listing of Gold One on the JSE and the ASX will occur by no later than mid-May 2009.

“We are extremely excited that we have reached this significant milestone in this company changing transaction, and are pleased to have received the support of our shareholders and our bondholders” commented Aflease CEO Neal Froneman.

“This transaction is the culmination of a clearly set out strategy to create a growth oriented international high margin gold company” he added. “We believe the international exposure will result in a premium rating for the company, allowing us to pursue acquisitive opportunities, while having good access to capital for our list of organic projects.”

Once the new transaction is complete, Gold One’s portfolio will include a resource base of over 13 million ounces of gold, placing it in the top five when measured in terms of gold resource inventory  on the ASX.

As reported in the company’s annual financial statement on 31March 2009, Aflease has managed to raise R89 million, which will be used for the completion of its flagship Modder East project.

“I am equally confident that we will be able to secure the remaining R30 million of capital required to complete the project and pour our first gold before the end of 2009,” concluded Froneman.