Johannesburg, South Africa — MININGREVIEW.COM — 17 June 2009 – The shares of Gold One International Limited – an Australian and South African gold resource company listed on the ASX and JSE – have been suspended on both exchanges by request until it has made an announcement on a capital raising exercise to shore up the company’s balance sheet.
In a cautionary announcement and trading halt released here, the company advised shareholders that it had entered into discussions in respect of a capital raising which, if successfully concluded, might have a material effect on the price of the securities of Gold One.
“Accordingly, shareholders are advised to exercise caution when dealing in Gold One securities until a full announcement is made,” the announcement added. “With reference to the above cautionary and in compliance with the rules of the Australian Securities Exchange the company`s securities have been trade halted on the ASX. It has therefore requested JSE Limited to also trade- halt the securities.”
“It’s a fairly common practice in Australia. We should have an announcement out early next week,” said company spokesman Ilja Graulich.
Fin24 reports that Gold One – which comprises the former Aflease Gold and Australia’s BMA Gold – has raised capital via a variety of methods, and by the end of May had a cash balance of R200 million, enough to complete its Modder East mine.
The company is now trying to raise more money to put towards its other prospects, as well as bolster its balance sheet. CEO Neal Froneman is currently on a road show in Australia and some Far East countries for this purpose.