| Tue 29 Nov 2011, 7:06 | | GDO - Gold One International Limited - Operational Update |
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GDO
GDO
GDO - Gold One International Limited - Operational Update
Gold One International Limited
Registered in Western Australia under the Corporations Act,
2001 (Cth) with registration number ACN: 094 265 746
(Registered in South Africa as an external company
with registration number 2009/000032/10)
ISIN: AU000000GDO5
Share Code on the ASX/JSE: GDO
OTCQX International: GLDZY
("Gold One" or the "company")
OPERATIONAL UPDATE
Gold One International Limited is pleased to provide the following operational
update to shareholders. This information update is provided to ensure that the
market is fully informed of operational developments given the recent
announcement dated 28 November, 2011, that the A$ 0.55 cash offer per share is
now free of conditions and has been declared unconditional ("Unconditional
Announcement").
The company is pleased to announce that production for the December 2011 quarter
up to 25 November, 2011, stands at 23,742 ounces of gold. Production for the
year to date therefore now stands at 113,569 ounces, and places the company well
on track to exceed its production target of 120,000 ounces for 2011. The
continued build up at Modder East is progressing well and a solid foundation has
been set for further build up in production during 2012.
This operational update is specifically relevant given the Unconditional
Announcement released yesterday. Under the offer terms announced on 16 May,
2011, should Gold One not achieve its 2011 production target for any reason
other than those matters outside of its control, BCX Gold Investment Holdings
Limited ("BCX Gold"), the Consortium`s special purpose vehicle, will be entitled
to be issued with a number of adjustment subscription shares. The precise number
of shares is to be calculated in accordance with schedule 5 to the transaction
implementation agreement which governs the offer and the minimum A$ 150 million
capital injection into Gold One ("the Transaction").
Gold One remains confident that the adjustment subscription clause will not
become effective given that annual production for 2011 is anticipated to exceed
120,000 ounces.
As was announced in the September 2011 Quarterly Report, Gold One took over
daily management of the Cooke Underground Operations and Randfontein Surface
Operations during September 2011. A complete replanning exercise for the Cooke
Underground Operations, incorporating Gold One`s turnaround strategy, is being
undertaken. The company is currently also completing its annual budgeting cycle
for the Modder East Operations. As a result, Gold One will provide a
comprehensive production update and guidance for 2012 during the beginning of
the new year.
The company`s exploration projects are progressing as anticipated. Most
notably, the drilling of the extension of the eastern payshoot at Ventersburg
(refer to the September 2011 Quarterly Report for further details) was completed
during the December 2011 quarter and these results have been considered in an
updated mineral resource estimate for the project, which is currently being
audited by an independent consulting firm and will be released during the March
2012 quarter. These resources will also underpin an updated pre-feasibility
study, due for completion during December 2011.
Gold One President and Chief Executive Officer Neal Froneman comments: "Our
production output to date reflects the commitment and excellence of Gold One`s
operational team. The Modder East team has ensured the operation has sufficient
mining flexibility to attain our 2011 production forecast and also to provide us
with a solid base on which to begin the new year. I look forward to the
incorporation of the Cooke Underground and Randfontein Surface operations into
our future production forecasts."
Offer Now Unconditional
Gold One would also like to refer shareholders to the Unconditional Announcement
released yesterday, which outlines the following:
Gold One is pleased to announce that BCX Gold has informed the company that:
- It has obtained the requisite approvals to proceed with the Transaction from
the National Development and Reform Commission, the Ministry of Commerce and the
State Administration for Foreign Exchange of the People`s Republic of China.
- Accordingly, it has freed the offer from all defeating conditions that had not
been fulfilled, including a waiver of the condition that the Consortium obtain a
minimum 60% interest in Gold One on a fully diluted basis.
This now clears the way for the Consortium to complete the Transaction in a
timely manner. The offer is scheduled to close at 7:00 pm AEDT/10:00 am CAT on
Thursday, 15 December, 2011, unless it is extended. However, shareholders who
intend to tender into the offer are encouraged to do so on or before Wednesday,
7 December 2011.
A full timetable outlining the major dates is available on the Gold One website,
www.gold1.co.za
Gold One President and Chief Executive Officer Neal Froneman comments: "I am
very pleased that the requisite Chinese approvals have been obtained and that
all remaining conditions to the offer have been waived. We look forward to
concluding the Transaction as soon as possible. To assist the company in
expediting the Transaction, and so that Gold One can receive the subscription
proceeds before the end of the year, I encourage those shareholders who wish to
accept into the offer to do so on or before Wednesday, 7 December, 2011, to
ensure that they receive their offer consideration before the end of the year."
The Board of Gold One reaffirms its recommendation that shareholders who wish to
realise, in whole or in part, their investment in Gold One for cash accept the
offer in the absence of a superior proposal.
Johannesburg
29 November 2011
JSE Sponsor
Macquarie First South Capital (Pty) Limited
Issued by Gold One International Limited
www.gold1.co.za
On behalf of Gold One:
Neal Froneman
President and CEO
+27 11 726 1047 (office)
+27 83 628 0226 (mobile)
neal.froneman@gold1.co.za
Ilja Graulich
Investor Relations
+27 11 726 1047 (office)
+27 83 604 0820 (mobile)
ilja.graulich@gold1.co.za
Carol Smith Investor Relations
+27 11 726 1047 (office)
+27 82 338 2228 (mobile)
carol.smith@gold1.co.za
Derek Besier
Farrington National Sydney
+61 2 9332 4448 (office) +61 421 768 224 (mobile)derek.besier@farrington.com.au
About Gold One
Gold One is a gold producer listed on the financial markets operated by the 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`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 809,326,610 shares
This news release does not constitute investment advice. Neither this news
release nor the information contained in it constitutes an offer, invitation,
solicitation or recommendation in relation to the purchase or sale of securities
in any jurisdiction.
Date: 29/11/2011 07:06:55 Produced by the JSE SENS Department.
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