| Thu 28 Apr 2011, 7:07 | | GDO - Gold One International Limited - Gold One to acquire 100% of Rand Uranium |
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GDO
GDO
GDO - Gold One International Limited - Gold One to acquire 100% of Rand Uranium
Gold One International 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 TO ACQUIRE 100% OF RAND URANIUM
- Gold One to acquire 100% of gold producer Rand Uranium for US$ 250 million
- Rand Uranium fits Gold One`s shallow asset profile
- Rand Uranium to add the following to Gold One:
- Approximately 150,000 ounces of annual gold production
- Gold resources of approximately 13.5 million ounces
- Gold reserves of approximately 3 million ounces
- Rand Uranium hosts an impressive uranium mineral resource and mineral (ore)
reserve base of approximately 90 million pounds and 41 million pounds,
respectively
- Near to medium term uranium co-product production potential; definitive
feasibility study 70% complete, offering the potential for a long life
uranium co-product stream in excess of 2 million pounds per annum
Gold One is pleased to announce that it has made a binding offer to acquire 100%
of Rand Uranium (Proprietary) Limited for US$ 250 million (ZAR 1.685 billion,
based upon the exchange rate on the date the offer was tabled of ZAR 1 / US$
6.74) in cash that has been accepted by Pamodzi Uranium (Proprietary) Limited,
Pamodzi Cooke (Proprietary) Limited and Armgold/Harmony Joint Investment Company
(Proprietary) Limited, joint owners of Rand Uranium. Rand Uranium is an
established shallow gold operation, which produced 163,000 ounces of gold in
2010 and fits Gold One`s stated strategy of mining shallow, low technical risk
gold resources.
The acquisition will enhance Gold One`s production profile to some 300,000
ounces per annum, while adding some 3 million ounces of gold mineral (ore)
reserves as well as 13.5 million ounces of gold mineral resources (see detailed
mineral resource and mineral (ore) reserve table).
Additionally, the acquisition of Rand Uranium will allow Gold One the unique
opportunity to consider gold and uranium co-product optimisation when
undertaking production planning, given Rand Uranium`s extensive uranium mineral
resource (approximately 90 million pounds) and mineral (ore) reserve
(approximately 41 million pounds). The ability to consider uranium extraction as
a co-product to gold significantly reduces the cash cost per ounce of gold
production. A definitive feasibility study on the uranium potential has been 70%
completed.
Gold One President and CEO Neal Froneman comments: "The Rand Uranium operations
represent one of the few established shallow gold producing operations in South
Africa. I am delighted that our offer for Rand Uranium has been accepted. This
value accretive acquisition materially increases Gold One`s production profile
to approximately 300,000 ounces per annum and significantly improves our
operating flexibility. The Gold One team, with its significant gold, uranium and
shallow mining experience, is well placed to bring the Rand Uranium assets to
account."
The parties have entered into an exclusivity agreement in order to facilitate
the finalisation and signature of a Sale Agreement. Gold One has secured a US$
210 million underwritten facility from a leading international financial
institution which will be available to fund part of the purchase price. The
availability of this funding is subject to conditions precedent which are not
unusual in a financing offer of this nature.
Rand Uranium was established in 2008 when Harmony Gold Mining Company Limited,
among the world`s top ten gold producers, sold the Cooke 1, 2 and 3 underground
operations and the surface assets of Randfontein Estates Gold Mine (excluding
the Doornkop Section). Rand Uranium`s assets and operations are situated in the
West Rand, 30 kilometers from Johannesburg, South Africa, and close to existing
infrastructure and water and electricity connections and has a net asset value
of over US$ 500 million.
As was announced to the ASX on 31 March 2011 and again on 21 April 2011, the
company has from time to time contemplated various initiatives to enhance
shareholder returns, including corporate transactions. The acquisition of Rand
Uranium by Gold One is one such transaction. Other transactions, whilst under
contemplation, are both confidential and not at a stage to warrant disclosure
because of their incomplete nature. For example, as was announced to the ASX on
31 March 2011 and again on 21 April 2011, Gold One is also contemplating a
potential change of control transaction for the company which, if it were to
proceed, could involve an offer to Gold One shareholders to acquire all of their
shares, on terms and conditions yet to be determined. The company can give no
assurance that this change of control transaction will eventuate.
BACKGROUND ON RAND URANIUM AND DETAILED MINERAL RESOURCE AND MINERAL (ORE)
RESERVE TABLE
A map of Rand Uranium`s operations can be found at
http://www.randuranium.co.za/oa_overview.php and additional background
information on Rand Uranium can be found in Gold One and Rand Uranium`s Terms
Announcement, titled "Terms Announcement - Gold One to Acquire 100% of Rand
Uranium", released 28 April, 2011.
RAND URANIUM: GOLD OPERATIONS
Gold One`s primary focus is Rand Uranium`s gold operations, which principally
include the shallow (typically 600 metres - 800 metres below surface) Cooke
operations. Gold One`s immediate focus will be on enhancing the profitability of
these existing gold operations. Enhanced mining efficiencies and optimised
mining mix practices will contribute to an increase in mined grades, while cost
reductions are envisaged through cost synergies between existing Gold One
structures and the three operating Cooke shafts. In addition, Gold One will
apply its mining experience, techniques and, where appropriate, technologies
successfully implemented at Modder East.
RAND URANIUM: URANIUM PROJECT
The significant uranium resources hosted within both the underground operations
and the surface assets of Rand Uranium provide a unique opportunity to consider
gold and uranium co-product optimisation when undertaking production planning.
To date, Rand Uranium is well advanced with definitive feasibility studies
(including 70% of detailed engineering design already completed) on its uranium
project. This project has primarily considered the construction of a uranium
processing facility and the surface uranium resources associated with the Cooke
Tailings Deposit.
Although Gold One`s short term focus is on increasing the profitability and
efficiencies of the existing gold business, it recognises a substantial medium
term opportunity to reduce operational risk and costs through co-product mining
and optimisation. Prior to the implementation and construction of a new uranium
processing facility, the company will undertake a detailed review of the
existing feasibility study to ensure optimal co-product mining of both the
surface and underground uranium resources.
RAND URANIUM: ADDITIONAL OPPORTUNITIES
In addition to the existing gold operations and uranium project, Rand Uranium
has further tangible upside potential that can be realised in the short to
medium term from:
- Additional surface resources
- Significant historic resources on the old Randfontein Estates Section also
held by Rand Uranium
- Increasing the production levels at the currently operating Cooke section.
Mineral Resources
Gold Uranium
Tonnes Gold Gold Tonnes Uranium Uranium
(Million) (g/t) (Moz) (Million) (kg/t) (Mlbs)
Cooke Measured 21.75 5.19 3.63 15.71 0.34 11.83
Underground
Indicated 51.65 3.00 4.98 39.36 0.26 22.84
Inferred 17.67 3.08 1.75 11.56 0.42 10.71
Total 91.07 3.54 10.36 66.64 0.31 45.38
Cooke Measured 302.18 0.28 2.76 61.30 0.21 27.84
Surface
Indicated 23.49 0.45 0.34 78.06 0.10 16.71
Inferred
Total 325.67 0.30 3.10 139.36 0.15 44.55
Total Measured 323.92 0.61 6.39 77.01 0.23 39.67
Indicated 75.14 2.20 5.32 117.43 0.15 39.55
Inferred 17.67 3.08 1.75 11.56 0.42 10.71
Total 416.73 1.00 13.46 206.00 0.20 89.93
Mineral Resources are quoted inclusive of Mineral (Ore) Reserves
Mineral Resources are quoted as at June 2010
Mineral Resources quoted at a gold price of US$1,400/oz, uranium price of
US$80/lb and exchange rate of ZAR8.22:US$1
Mineral Resources are quoted in accordance with JORC and SAMREC reporting
codes
Mineral (Ore) Reserves
Gold Uranium
Tonnes Gold Gold Tonnes Uranium Uranium
(Million) (g/t) (Moz) (Million) (kg/t) (Mlbs)
Cooke Proved 5.13 4.54 0.75 2.68 0.34 2.02
Underground
Probable 11.33 3.32 1.21 7.03 0.27 4.14
Total 16.47 3.70 1.96 9.71 0.29 6.16
Cooke Proved 73.93 0.28 0.67 61.30 0.21 27.84
Surface
Probable 21.89 0.45 0.32 21.89 0.14 6.95
Total 95.82 0.32 0.99 83.19 0.19 34.79
Total Proved 79.06 0.56 1.42 63.98 0.21 29.86
Probable 33.22 1.43 1.53 28.92 0.17 11.09
Total 112.29 0.82 2.95 92.90 0.20 40.95
Mineral Reserves are quoted as at June 2010
Mineral Reserves quoted at a gold price of US$1,100/oz, uranium price of
US$65/lb and exchange rate of ZAR7.77:US$1
Mineral Reserves are quoted in accordance with JORC and SAMREC reporting codes
Parktown, Johannesburg
28 April 2011
MACQUARIE FIRST SOUTH ADVISERS (PTY) LIMITED
JSE Sponsor
For and on behalf of Gold One:
Corporate Adviser:
Qinisele Resources (Proprietary) Limited
JSE Sponsor:
Macquarie First South Advisers (Proprietary) Limited
Australian Corporate Adviser:
Hartleys Limited
South African Legal Adviser:
Edward Nathan Sonnenbergs
Australian Legal Counsel:
Blake Dawson
Issued by Gold One International Limited
www.gold1.co.za
For further information contact:
Neal Froneman Ilja Graulich
President and CEO Investor Relations
+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
Carol Smith Derek Besier
Investor Relations Farrington National Sydney
+27 11 726 1047 (office) +61 2 9332 4448 (office)
+27 82 338 2228 (mobile) +61 421 768 224 (mobile)
carol.smith@gold1.co.za derek.besier@farrington.com.au
About Gold One
Gold One is a gold producer listed on the financial markets operated by ASX
Limited and the JSE Limited, 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). To date Modder East
has 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 Modder East to full production. Gold One`s
other projects and targets include Ventersburg in the Free State Goldfields, the
Tulo concession in Mozambique and the Etendeka greenfield project in Namibia.
Gold One has an issued share capital of 807,350,406 shares.
Forward-Looking Statement
This 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 Gold One International Limited are forward-looking statements
(or forward-looking information) that involve various risks, assumptions and
uncertainties. There can be no assurance that such statements will prove to be
accurate and actual values, results and future events could differ materially
from those anticipated in such statements. Important factors could cause actual
results to differ materially from Gold One`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 Modder
East and new deposits; availability of capital required to place Gold One`s
properties into production; the ability to obtain or maintain a listing in South
Africa, Australia, Europe or North America; 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, economic and financial market conditions; political
risks; Gold One`s hedging practices; currency fluctuations; title disputes or
claims limitations on insurance coverage. Although Gold One has 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.
Any forward-looking statements in this release speak only at the time of issue.
There can be no assurance that such statements will prove to be accurate as
actual values, results and future events could differ materially from those
anticipated in such statements. Accordingly, readers should not place undue
reliance on forward-looking statements. Gold One does not undertake to update
any forward-looking statements that are included herein, or revise any changes
in events, conditions or circumstances on which any such statement is based,
except in accordance with applicable securities laws and stock exchange listing
requirements.
COMPETENT PERSON
The information in this release that relates to Rand Uranium exploration
results, mineral resources or ore reserves is based on information compiled by
Mr. Jurgens Visser who is a professional mine surveyor registered with the South
African Council for Professional and Technical Surveyors (PLATO), membership
number PLS0693. Mr Visser is the Head of Mineral Resources Management for Rand
Uranium, with which he is a full-time employee. He has 25 years experience which
is relevant to the style of mineralisation and type of deposit under
consideration, and to the activity which he is undertaking, to qualify as a
Competent Person for the purposes of both the 2004 Edition of the Australasian
Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves
(JORC Code) and the 2007 Edition of the South African Code for Reporting of
Exploration Results, Mineral Resources and Mineral Reserves (SAMREC Code). Mr
Visser consents to the inclusion in this release in the form and context in
which they appear.
The information in this release that relates to Gold One exploration results,
mineral resources or ore reserves is based on information compiled by Dr Richard
Stewart, who has a doctorate in geology and who is a professional natural
scientist registered with the South African Council for Natural Scientific
Professions (SACNASP), membership number 400051/04. Dr Stewart is also a member
of the Geological Society of South Africa (GSSA) and Senior Vice President:
Business Development for Gold One, with which he is a full-time employee. He has
10 years experience which is relevant to the style of mineralisation and type of
deposit under consideration, and to the activity which he is undertaking, to
qualify as a Competent Person for the purposes of both the 2004 Edition of the
Australasian Code for Reporting of Exploration Results, Mineral Resources and
Ore Reserves (JORC Code) and the 2007 Edition of the South African Code for
Reporting of Exploration Results, Mineral Resources and Mineral Reserves (SAMREC
Code). Dr Stewart consents to the inclusion in this release of the matters based
on information compiled by Gold One employees and it`s consultants in the form
and context in which they appear. Further information on Gold One`s resource
statement is available in the pre-listing statement of Gold One International
Limited issued on 19 December 2008 and in the resource statements released by
Gold One on the ASX Announcements Platform and the Stock Exchange News Service
(SENS) on 11 October 2010 (Megamine), 7 December 2010 (Ventersburg), and 15
December 2010 (Modder East).
SAMREC AND JORC TERMINOLOGY
In addition, this release uses the terms `indicated resources` and `inferred
resources` as defined in accordance with the SAMREC Code, prepared by the South
African Mineral Resource Committee (SAMREC), under the auspices of the South
African Institute of Mining and Metallurgy (SAIMM), effective March 2000 or as
amended from time to time and where indicated in accordance with the Canadian
National Instrument 43-101 - Standards for Disclosure for Mineral Projects. The
terms `indicated resources` and `inferred resources` are also defined in the
2004 Edition of the JORC Code, prepared by the Joint Ore Reserves Committee
(JORC) of the Australasian Institute of Mining and Metallurgy (AusIMM), the
Australian Institute of Geoscientists (AIG) and the Minerals Council of
Australia (MCA). (The use of these terms in this release is consistent with the
definitions of both the SAMREC Code and the JORC Code.)
A mineral reserve (or `ore reserve` in the JORC Code) 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 (or `proved ore
reserve` in the JORC Code) 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 (or `probable ore
reserve` in the JORC Code) 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 fossilised 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 and Australian 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 and the JORC Code, respectively.
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 Gold One 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: 28/04/2011 07:07:01 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.
