Neal Froneman,
Chief Executive,
Aflease
 
Johannesburg, South Africa — MININGREVIEW.COM — 14 January 2009 – Aflease Gold Limited – a growth-oriented South African gold mining and exploration company listed on the JSE – has raised an additional R38 million which will go towards the funding of its Modder East gold project on the East Rand.

Announcing this in a statement released here, the company confirmed that the funding had been obtained through the disposal of the first tranche of Randgold & Exploration shares swapped with Trinity Asset Management in November 2008 to Investec.

It explained that the 3 million Randgold & Exploration shares Aflease had acquired from Trinity in exchange for 30 million Aflease shares had been sold at an average price of R12.72 per share, which was equivalent to R1.27 per Aflease share.

Aflease chief executive Neal Froneman said the company was delighted to have secured a significant part of its remaining funding requirement on very advantageous terms in extremely difficult market conditions. “The fact that this was achieved at an equivalent share price which is substantially higher than Aflease’s current trading price is an indication of just how undervalued the company is,” he added.

Froneman said Aflease was currently developing the shallow, high-margin Modder East gold mine on the Witwatersrand, and that the mine was scheduled to pour its first gold later this year.

He also reiterated that Aflease was in the process of merging with the Australian-based BMA Gold to create a new company known as Gold One International, which would be listed on the Australian and Johannesburg stock exchanges.