HomeGoldGold One secures finance for acquisitions

Gold One secures finance for acquisitions

At Gold One’s Modder
East gold mine,
hydropower is being
used for powering
the rock drills, cutting
electricity consumption
by 20%
Johannesburg, South Africa — 04 April 2012 – Gold One International “’ a dual listed mid-tier mining group with gold operations and gold and uranium prospects across Southern Africa “’ has confirmed that it has secured the necessary finance to settle its Rand Uranium and Ezulwini acquisition deals.

A company news release issued here said that these funding agreements would support the acquisition of Rand Uranium and the purchase of Ezulwini Mining Company from First Uranium Corporation.

Gold One signed financing agreements for the Rand Uranium acquisition with Investec in August 2011, and would now settle the remaining balance of US$112 million. The total consideration for the acquisition of Rand Uranium was US$250 million.

The acquisition of Rand Uranium’s mineral interests builds on Gold One’s flagship Modder East mine, some 30kmfrom Johannesburg. With the acquisition of Rand Uranium, Gold One could log overall gold production of 300,000 to 350,000 ounces of gold in 2013.

The total funding agreement with Investec was for about US$210 million. In addition, Gold One has been granted a US$75 million unsecured shareholder loan by Baiyin Nonferrous wholly owned subsidiary Baiyin Precious Metals.

Gold One now has the ability to finalise the US$70 million payable on the completion of the acquisition of Ezulwini Mining. Ezulwini represents an attractive economic proposition in that it provides seamless regional consolidation with Gold One’s Cooke Operations.

Gold One will target reduced operating costs through shared synergies with the Cooke underground operations, while also considering a focused underground development programme to ensure sustainable underground mining flexibility.

Earlier this week, Gold One signed a definitive agreement to acquire the Ezulwini mine in South Africa, where Ezulwini Mining produces gold and uranium.

Source: Gold One International. For more information click here.