| Thu 7 Oct 2010, 7:05 | | GDO - Gold One receives credit approval for us$65 million loan facility to |
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GDO
GDO
GDO - Gold One receives credit approval for us$65 million loan facility to
meet its obligations under its existing convertible bonds
Gold One International Limited
(Previously BMA Gold Limited)
Registered in Western Australia under the Corporations Act, 2001 (Cth)
Registration number ACN: 094 265 746
Registered as an external company in the Republic of South Africa
Registration number: 2009/000032/10
Share code on the ASX/JSE: GDO
OTCQX International: GLDZY
ISIN: AU000000GDO5
("Gold One" or the "company")
GOLD ONE RECEIVES CREDIT APPROVAL FOR US$65 MILLION LOAN FACILITY TO MEET ITS
OBLIGATIONS UNDER ITS EXISTING CONVERTIBLE BONDS
Gold One is pleased to announce that the company has received credit approval
from two leading international banks - Absa Capital (a division of Absa Bank
Limited) and BNP Paribas - for a US$65 million loan facility.
Gold One believes a debt facility is the most effective form of refinancing
the company`s convertible bonds and that it presents the best bond refinancing
option for existing shareholders. The loan will ensure Gold One has the
capacity to refinance all of its convertible bonds in December 2010, should
its bondholders exercise their once-off put option.
The facility has a maximum term of four-and-a-half-years with interest and
capital payments only commencing in June 2011. Capital payments will be
structured to take into account the ramp up of production at Modder East. The
facility will bear interest at a market related rate based on USD London
Interbank Offered Rate (`LIBOR`), which is currently 0.3%. Gold One will enter
into a hedging program typical for a facility of this nature.
The advance of the facility is subject to conclusion of legal documentation
and the fulfillment of certain conditions precedent. Key outstanding
conditions precedent include: the amendment of and obtaining of consent for
the cession of several agreements of the Modder East mine; the obtaining of
certain additional insurances commonly required for a project finance
facility; and exchange control approval from the South African Reserve Bank
for a US dollar denominated loan.
Gold One President and Chief Executive Officer Neal Froneman comments: "I am
delighted that we have reached this definitive stage, providing much needed
certainty around the refinancing of the convertible bonds. We have always
maintained that a pure debt facility is the most appropriate solution given
the solid fundamentals of our flagship Modder East mine, which underpins the
loan facility. Our next stage will be to ensure we receive a firm commitment
from our bondholders as to what their intentions are, whereafter the company
will be able to focus fully on strategic initiatives currently underway."
Johannesburg
7 October 2010
JSE Sponsor
Macquarie First South Advisers (Pty) Ltd
Issued by Gold One International Limited
Website: www.gold1.co.za
For further information contact:
Neal Froneman Ilja Graulich
President and CEO VP: Corporate Affairs
+27 11 726 1047 (office) +27 11 726 1047 (office)
+27 83 628 0226 (mobile) +27 83 604 0820 (mobile)
neal.froneman@gold1.co.za ilja.graulich@gold1.co.za
Derek Besier Carol Smith
Farrington National Sydney Investor Relations
+61 2 9332 4448 (office) +27 11 726 1047 (office)
+61 421 768 224 (mobile) +27 82 338 2228 (mobile)
Derek.besier@farrington.com.au carol.smith@gold1.co.za
About Gold One
Gold One is a gold producer listed on the financial markets operated by ASX
Limited (the Australian Securities Exchange) and JSE Limited (the Johannesburg
Stock Exchange), issuer code GDO. Its flagship operation is the newly built
shallow Modder East mine on the East Rand, some 30 kilometres from
Johannesburg. Modder East is the first new mine to be built in the region in
28 years and distinguishes itself from most of the other gold mines in South
Africa owing to its shallow nature (300 metres to 500 metres below surface),
having to date provided direct employment opportunities for over 1,100 people.
Gold One also owns the nearby existing Sub Nigel mine, which is used primarily
as a training centre in the build-up of the Modder mine to full production.
Its other projects and targets include Ventersburg and Bothaville, both in the
Free State Goldfields, the Tulo concession in Mozambique and the Etendeka
greenfields project in Namibia. Gold One has an issued share capital of
805,894,985 shares.
About Absa Capital
Absa Capital, a division of Absa Bank Limited (Absa) and affiliated to
Barclays Capital, is a leading South African investment bank with global
reach, offering clients financing, risk management and advisory solutions in a
wide range of currencies and structures across the globe.
About BNP Paribas
BNP Paribas ) is one of the six strongest banks in the world within its peer
group, according to Standard & Poor`s, and a leading European provider of
financial services on a worldwide scale. It ranks highly in its three core
activities: retail banking, investment solutions, and corporate and investment
banking, which includes a dedicated group specialising in providing structured
finance solutions to the metals and mining industry.
Date: 07/10/2010 07:05:07 Produced by the JSE SENS Department.
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