| Tue 13 Jan 2009, 17:31 | | AFO - Aflease Gold - Aflease Secures Additional Funding For Modder East |
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AFO
AFO
AFO - Aflease Gold - Aflease Secures Additional Funding For Modder East
Completion
AFLEASE GOLD LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1984/006179/06)
Share Code: AFO ISIN Code: ZAE 000075867
International Prime QX (OTCQX): AFSGY
("Aflease Gold")
AFLEASE SECURES ADDITIONAL FUNDING FOR MODDER EAST COMPLETION
Johannesburg, 13 January 2009 - Aflease Gold (JSE share code: AFO) today
announced that it had raised R38 million, at an equivalent placement price of
R1.27 per Aflease share, through the disposal of the first tranche of Randgold
& Exploration shares swapped with Trinity Asset Management in November 2008 to
Investec.
The 3 million Randgold & Exploration shares Aflease acquired from Trinity in
exchange for 30 million Aflease shares have been sold at an average price of
R12.72 per share, which is 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 said.
Aflease is currently developing the shallow, high-margin Modder East gold mine
on the Witwatersrand. The mine is scheduled to pour its first gold later this
year. Aflease is also in the process of merging with the Australian-based BMA
Gold to create a new company known as Gold One International, which will be
listed on the Australian and Johannesburg stock exchanges.
For further information contact Neal Froneman, chief executive, on +27 83 628
0226
Issued by du Plessis Associates on behalf of Aflease Gold Limited
dPA contact Helen McKane Tel : +27 11 728 4701, Fax: +27 11 728 2547, Mobile:+27
82 330 2034 or e-mail: afleasegold@dpapr.com
website : www.afleasegold.com
FORWARD-LOOKING STATEMENT: This news release includes certain "forward-looking
statements" and "forward-looking information". All statements other than
statements of historical fact included in this release including, without
limitation, statements regarding future plans and objectives of Aflease Gold and
BMA Gold are forward-looking statements (or forward-looking information) that
involve various risks and uncertainties. There can be no assurance that such
statements will prove to be accurate and actual results and future events could
differ materially from those anticipated in such statements. Important factors
could cause actual results to differ materially from Aflease Gold and BMA Gold`s
expectations. Such factors include, among others, the actual results of
exploration activities, actual results of reclamation activities, the estimation
or realisation of mineral reserves and resources, the timing and amount of
estimated future production, costs of production, capital expenditures, costs
and timing of the development of new deposits, availability of capital required
to place Aflease Gold and BMA Gold`s properties into production, conclusions of
economic evaluations, changes in project parameters as plans continue to be
refined, future prices of gold and other commodities, possible variations in ore
grade or recovery rates, failure of plant, equipment or processes to operate as
anticipated, accidents, labour disputes and other risks of the mining industry,
delays in obtaining governmental approvals, permits or financing or in the
completion of development or construction activities, Aflease Gold and BMA
Gold`s hedging practices, currency fluctuations, title disputes or claims
limitations on insurance coverage, Although Aflease Gold and BMA Gold have
attempted to identify important factors that could cause actual results to
differ materially, there may be other factors that cause results not to be as
anticipated, estimated or intended. There can be no assurance that such
statements will prove to be accurate as actual results and future events could
differ materially from those anticipated in such statements. Accordingly,
readers should not place undue reliance on forward-looking statements. Aflease
Gold and BMA Gold do not undertake to update any forward-looking statements that
are included herein, except in accordance with applicable securities laws. No
stock exchange, securities commission or other regulatory authority has approved
or disapproved the information contained herein.
Date: 13/01/2009 17:31:01 Produced by the JSE SENS Department.
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