Ezulwini mine “’ to
be purchased by
Gold One for US$70
million
 
Johannesburg, South Africa — MININGREVIEW.COM — 05 March 2012 – Gold One international is to buy First Uranium Corporation’s Ezulwini shaft and resources for US$70 million in cash in a transaction that will refashion Gold One into a fully-fledged gold and uranium producer.

In terms of an announcement to the Australian and Canadian stock exchanges, Gold One said that it would, on completion of the deal, seek to extract synergies between its recently purchased Cooke shaft and Ezulwini.

Gold One bought Cooke shaft in South Africa’s west Rand town of Randfontein last year from Rand Uranium, including that company’s uranium resources, which was then Gold One’s first foray into uranium.

Miningmx reports that the deal with First Uranium sets out Gold International as a company strategically exposed to the gold and uranium markets, and signals Gold One CEO Neal Froneman’s intention to return to uranium, a commodity in which he trail-blazed several years ago as boss of Uranium One.

“This acquisition is aligned to our business strategy of value-accretive growth and is a key component in the realisation of synergies across the Cooke underground and Randfontein surface operations,” said Froneman.

In support of the transaction, Froneman said that Ezulwini was a project on which some US$400 million had largely been spent. However, Gold One would now focus on building an appropriately sized operation which would build on synergies with the next door Cooke shaft.

Ezulwini comprises a new gold plant with nameplate capacity of 2.4Mtpa, and a new uranium plant with nameplate capacity of 1.2Mtpa, the company said in its announcement.

Ezulwini sold 59,689 ounces of gold last year and produced 31,407 pounds of uranium. It also has more than 13.2Mt of measured and indicated mineral resources containing 2.7Moz of gold and 6.6Mlbs of uranium, and 159Mt of inferred mineral resources containing 25.5Moz of gold and 189Mlbs of uranium, the company added.

Gold One will take complete management control over the Ezulwini asset on completion of the deal, which also includes a US$10 million loan to First Uranium Corporation, deductible from the acquisition price, and on condition of concluding a deal with AngloGold Ashanti in which First Uranium sells its Mine Waste Solutions and associated gold and uranium resources.