Randgold To Take One Third Stake In Aflease
RANDGOLD & EXPLORATION COMPANY LIMITED
(Incorporated in the Republic of South Africa)
(Registration Number 1992/005642/06)
Share code: RNG ISIN: ZAE000008819
Nasdaq trading symbol: RANGY
(`Randgold`)
Issued by Marulelo Communications
On behalf of Randgold & Exploration
August 2nd, 2004
RANDGOLD TO TAKE ONE THIRD STAKE IN AFLEASE
Randgold & Exploration (RG&E) is to take approximately one third of
Aflease in a share swap deal worth some R125-million.
RG&E will issue 9,4 million Randgold shares to Aflease and in exchange
Aflease will issue 94 million Aflease shares that will be allotted to
RG&E.
`The transaction is worth around R125-million and will result in RG&E
acquiring approximately one third of Aflease,` said RG&E chief
executive Brett Kebble. `A share swop is the most viable route to take
because Aflease is trading at a very significant discount to its
underlying value.`
Kebble said Aflease as a company has very exciting uranium assets and
that: `given a continued upward trend in the uranium price, the company
is poised to profit handsomely from them.` Aflease has the largest
uranium resources in South Africa and one of the largest in the world.
`I foresee a situation where Aflease will become a uranium company with
attractive gold credits,` said Kebble.
RG&E`s intervention will also enable Aflease to fund its planned
development of both its Modder East and Bonanza South projects.
Kebble added that the losses incurred by Aflease for the year ended 31
December 2003, were primarily as a result of suspension of open-pit
mining operations of Aflease`s Klerksdorp assets and were not
illustrative of future anticipated results.
Kebble said that from RG&E`s point of view the deal is hard to fault.
`The time is right to do this deal and it is exactly in line with the
Group`s strategy to focus on world-class mineral deposits,` he said.
Referring to the fact that RG&E has recently established a strong base
in alluvial diamond deposits in Angola, Kebble said that he was very
pleased with recent developments. `The stake in Aflease is more good
news.`
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