| Mon 20 Apr 2009, 7:06 | | AFO - Aflease Gold Limited - Bondholders Approve Gold One Transaction |
|
AFO
AFO
AFO - Aflease Gold Limited - Bondholders Approve Gold One Transaction
Aflease Gold Limited
(Incorporated in the Republic of South Africa)
(Registration number 1984/006179/06)
JSE Share code: AFO
ISIN: ZAE000075867
International Prime QX (OTCQX): AFSGY
("Aflease" or the "Company")
BONDHOLDERS APPROVE GOLD ONE TRANSACTION
Johannesburg, 20 April 2009: Aflease Gold Limited ("Aflease" or "the company")
(AFO - JSE) is pleased to announce that all of the company`s bondholders have
approved the acquisition of Aflease by ASX listed Gold One International Limited
("Gold One"), previously known as BMA Gold Limited.
"We are extremely excited that we have reached this significant milestone in
this company changing transaction, and are pleased to have received the support
of our shareholders and our bondholders" commented Aflease CEO Neal Froneman.
Aflease today announced that it had received unanimous support from the Aflease
bondholders and that the Aflease convertible bonds will be cancelled and
transferred to Gold One.
The company is now awaiting final regulatory approval, namely for the proposed
new auditors of Gold One to be registered with the JSE Limited ("JSE"), and the
dual primary listing of the new shares on both exchanges should be completed by
no later than mid May.
"This transaction is the culmination of a clearly set out strategy to create a
growth oriented international high margin gold company" said Froneman. "We
believe the international exposure will result in a premium rating for the
company, allowing us to pursue acquisitive opportunities, while having good
access to capital for our list of organic projects."
Once the new transaction is complete, Gold One`s portfolio will include a
resource base of over 13m ounces of gold, placing it in the top 5 - when
measured in terms of gold resource inventory - on the ASX.
Funding update
On 13 January 2009, Aflease announced that through an innovative share swap
transaction, the company had raised R38million by swapping shares in Randgold &
Exploration Company Limited ("Randgold") acquired from Trinity Asset Management
(Pty) Limited ("Trinity") for shares in Aflease, while simultaneously disposing
of the Randgold shares to Investec Limited.
The company notified the market that if and when possible, this mechanism would
be repeated, and Aflease is pleased to report that it managed to raise an
additional R51million through the issue of a further 44,6 million Aflease shares
to Trinity.
As reported in the company`s annual financial statement on 31 March 2009,
Aflease has thus managed to raise R89 million which will be used for the
completion of the flagship Modder East project.
"I am delighted that we managed to successfully extend the Trinity arrangement
and thus ensure the development of our project remains on track" said Froneman"
I am equally confident that we will be able to secure the remaining R30m of
capital required to complete the project and pour our first gold before the end
of 2009" concluded Froneman.
- Ends-
Issued by Aflease Gold Limited
Website : www.gold1.co.za
For further information contact:
Neal Froneman Carol Smith Ilja Graulich
Aflease Gold Chief Aflease Gold Investor Lucidity Investor
Executive Relations Relations
+27 11 726 1047 (office) +27 11 726 1047 (office) +27 83 604 0820
(mobile)
+27 83 628 0226 (mobile) +27 82 338 2228 (mobile)
Note to editors:
Aflease is a South African gold development company listed on the JSE Limited
(share code AFO). It is developing the new Modder East mine on the East Rand,
some 30 kilometres from Johannesburg, and also owns the nearby existing Sub
Nigel mine, which has recently been recommissioned. Its other projects and
targets include Ventersburg, a large project with indicated resources 0f
1.43million, and Bothaville, both in the Free State Goldfields, the Tulo
concession in Mozambique and the Etendeka greenfields project in Namibia. It has
a resource base of some 13 million ounces of gold.
___________________________________________________________________________
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. In
addition, this news release uses the terms "indicated resources" and "inferred
resources" as defined in accordance with the SAMREC Code (South African Code for
Reporting of Mineral Resources and Mineral Reserves prepared by the South
African Mineral Resource Committee) (SAMREC) under the auspices of the South
African Institute of Mining and Metallurgy effective March 2000 or as amended
from time to time. A mineral reserve is the economically mineable part of a
measured or indicated resource demonstrated by at least a preliminary
feasibility study. This study must include adequate information on mining,
processing, metallurgical, economic and other relevant factors that demonstrate
at the time of reporting that economic extraction can be justified. A mineral
reserve includes diluting materials and allows for losses that may occur when
the material is mined. A proven mineral reserve is the economically mineable
part of a measured resource for which quantity, grade or quality, densities,
shape and physical characteristics are so well established that they can be
estimated with confidence sufficient to allow the appropriate application of
technical and economic parameters to support production planning and evaluation
of the economic viability of the deposit. A probable mineral reserve is the
economically mineable part of an indicated mineral resource for which quantity,
grade or quality, densities, shape and physical characteristics can be estimated
with a level of confidence sufficient to allow the appropriate application of
technical and economic parameters to support mine planning and evaluation of the
economic viability of the deposit. A mineral resource is a concentration or
occurrence of natural, solid, inorganic or fossilized organic material in or on
the earth`s crust in such form and quantity and of such a grade or quality that
it has reasonable prospects for economic extraction. The location, quantity,
grade, geological characteristics and continuity of a mineral resource are
known, estimated or interpreted from specific geological evidence and knowledge.
A measured mineral resource is that part of a mineral resource for which
quantity, grade or quality, densities, shape and physical characteristics can be
estimated with a level of confidence sufficient to allow the appropriate
application of technical and economic parameters to support mine planning and
evaluation of the economic viability of the deposit. The estimate is based on
detailed and reliable exploration, sampling and testing information gathered
through appropriate techniques from locations such as outcrops, trenches, pits,
workings and drillholes that are spaced closely enough to confirm both
geological and grade continuity. An indicated mineral resource is that part of a
mineral resource for which quantity, grade or quality, densities, shape and
physical characteristics can be estimated with a level of confidence sufficient
to allow the appropriate application of technical and economic parameters to
support mine planning and evaluation of the economic viability of the deposit.
The estimate is based on detailed and reliable exploration and testing
information gathered through appropriate techniques from locations such as
outcrops, trenches, pits, workings and drillholes that are spaced closely enough
for geological and grade continuity to be reasonably assumed. An inferred
mineral resource is that part of a mineral resource for which quantity and grade
or quality can be estimated on the basis of geological evidence and limited
sampling and reasonably assumed, but not verified, geological and grade
continuity. The estimate is based on limited exploration and sampling gathered
through appropriate techniques from locations such as outcrops, trenches, pits,
workings and drillholes. Mineral resources which are not mineral reserves do not
have demonstrated economic viability. Investors are cautioned not to assume that
all or any part of the mineral deposits in the measured and indicated resource
categories will ever be converted into reserves. In addition, "inferred
resources" have a great amount of uncertainty as to their existence and economic
and legal feasibility. It cannot be assumed that all or any part of an inferred
mineral resource will be ever be upgraded to a higher category. Under South
African rules, estimates of inferred mineral resources may not form the basis of
feasibility or pre-feasibility studies or economic studies except under
conditions noted in the SAMREC Code. Investors are cautioned not to assume that
all or any part of an inferred resource exists or is economically or legally
mineable. Exploration data is acquired by the corporation and its consultants
under strict quality assurance and quality control protocols. No stock exchange,
securities commission or other regulatory authority has approved or disapproved
the information contained herein.
Date: 20/04/2009 07:06:02 Produced by the JSE SENS Department.
The SENS service is an information dissemination service administered by the
JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or
implicitly, represent, warrant or in any way guarantee the truth, accuracy or
completeness of the information published on SENS. The JSE, their officers,
employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature,
howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
