| Thu 7 May 2009, 14:56 | | AFO - Aflease - Aflease Gold/BMA Gold transaction becomes unconditional and |
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AFO
AFO
AFO - Aflease - Aflease Gold/BMA Gold transaction becomes unconditional and
Modder East is fully funded
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")
Aflease Gold/BMA Gold transaction becomes unconditional and Modder East is
fully funded
Johannesburg, 7 May 2009: Aflease Gold Limited ("Aflease" or "the company")
(AFO - JSE) is pleased to announce that all conditions precedent to conclude
the acquisition of Aflease by ASX-listed Gold One International Limited
("Gold One" - formerly known as BMA Gold Limited) have been met and the new
auditors of Gold One have been registered with JSE Limited ("JSE").
This means that the last day to trade Aflease shares will be Friday 15 May
2009, and the share will be suspended before market opens on Monday 18 May
2009, the same day on which Gold One will list on the JSE. Aflease`s listing
on the JSE will in turn terminate on 25 May 2009.
"This is indeed fantastic news for Aflease and its shareholders, who have
been incredible supportive of this transaction" said Aflease CEO Neal
Froneman. "I am confident that the support shown will be rewarded as we set
upon a new strategic phase for the company" added Froneman.
Modder East fully funded
Aflease today also announced that the company has raised R44 million with
selected investors and is thus fully funded to complete the development of
its flagship Modder East project in South Africa.
Aflease issued a total of 32.8 million shares at an average price of R1.34 to
raise the necessary capital. As previously disclosed, the company required
some R30 million, following earlier capital raises this year, in order to
meet cash requirements for the final stage of the Modder East project.
"We were always confident that we could raise the necessary capital, even in
tough markets" said Froneman. "However, I am delighted that we were able to
achieve this capital raising so efficiently and well ahead of time, providing
certainty and comfort to the operational team."
In November 2008, Aflease announced that it needed a further R120 million in
order to fully fund the Modder East project.
In March, Aflease said that through an innovative share swap transaction with
Trinity Asset Management (Pty) Limited, the company had raised R89 million,
which together with the most recent R44 million meet the necessary capital
requirements.
- Ends-
Issued by Aflease Gold Limited
Website : www.gold1.co.za
For further information contact:
Neal Froneman Ilja Graulich Carol Smith
Aflease Gold Chief Aflease VP: Corporate Aflease Gold Investor
Executive Affairs Relations
+27 11 726 1047 +27 11 726 1047 (office) +27 11 726 1047 (office)
(office)
+27 83 628 0226 +27 83 604 0820 (mobile) +27 82 338 2228 (mobile)
(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 of
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: 07/05/2009 14:56:02 Produced by the JSE SENS Department.
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