HomeGoldShareholders approve creation of Gold One

Shareholders approve creation of Gold One

Neal Froneman,
Chief Executive,
Aflease Gold
Johannesburg, South Africa — MININGREVIEW.COM — 22 January 2009 – The shareholders of JSE-listed Aflease Gold Limited – a growth-oriented South African gold mining and exploration company – and Australian based BMA Gold have voted overwhelmingly in favour of a deal which will combine the two companies to create a new gold mining, development and exploration business known as Gold One International.

A news release issue here confirmed that at meetings held in Johannesburg and Sydney yesterday, the 76.55% of Aflease Gold shareholders represented voted 100% in favour of the transaction, while 99.8% of BMA shareholders voted for it.

The transaction involves the inward listing of BMA on the JSE and the subsequent acquisition by BMA of all the issued ordinary shares in Aflease Gold. The transaction has been approved by the South African Reserve Bank and the JSE.

The release revealed that the new company would be listed on the Australian and Johannesburg stock exchanges, and would have assets including Aflease Gold’s new Modder East mine near Johannesburg, which is on track for first production before the end of 2009; a gold resource of more than 15 million ounces; and gold exploration and development projects in Australia, South Africa, Namibia and Mozambique.

Aflease Gold chief executive Neal Froneman said the shareholder vote had shown strong support for the companies’ strategy to build Gold One into a leading mid-tier gold producer with an attractive growth profile.

Aflease Gold still needs its bondholders to waive a technical change of control condition before the scheme can be implemented, and a meeting of bondholders is expected to take place during mid-February for Aflease to seek the required waiver.

“Our bondholders have much to gain from the creation of a stronger company with significantly enhanced prospects, and I am confident that they will agree with shareholders about the merits of the transaction and support its completion,” Froneman concluded.