| Tue 19 Jul 2005, 16:44 | | Aflease Gold and Uranium Resources limited - Press |
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Aflease Gold and Uranium Resources limited - Press release
Aflease Gold and Uranium Resources limited
Share code: AFL
Isin: ZAE000061461
Johannesburg
19/07/2005
Press release
Uranium and gold mining junior Aflease Gold and Uranium Resources limited has
concluded an agreement to purchase the Weltevreden gold mine near Klerksdorp
from AngloGold Ashanti Limited. The Weltevreden mine has a shallow indicated
resource of 3.2 million oz`s grading at 4.75 g/t.
The purchase price of R75m represents a cost of $3.44 per indicated oz and will
be paid in Aflease shares, which will have the effect of making AngloGold
Ashanti an Aflease shareholder, with a stake of just over 5%.
The Aflease shares will be issued at R3.62 per ordinary share, which was the 30-
day volume-weighted moving average at the time Aflease submitted its offer.
Aflease is pleased that AngloGold Ashanti has irrevocably undertaken to vote its
shares in favour of the previously announced reverse takeover (RTO) of Southern
Cross Resources Inc. (SCR).
`We are delighted with this acquisition, which will boost Aflease`s quality gold
portfolio,` said Aflease CE Neal Froneman today.
`This acquisition fits well into our strategy of growing our asset base through
the purchase of quality, high-margin resources, with an emphasis on shallow
rather than deep-level mining, and we are already at work on a production plan
for this mine.`
Development of the mine began in 1990, but the operation was put on care and
maintenance due to a fall in the gold price at the time.
Froneman also warmly welcomed Aflease`s new relationship with gold and uranium
producer AngloGold Ashanti, as a significant new shareholder in Aflease.
`We are very pleased that we were able to conclude this deal with Aflease
shares, and that this was accepted by AngloGold Ashanti,` he said.
Anglogold Ashanti had earlier decided that it did not itself intend to develop
the Weltevreden site, which is adjacent to its Tau Lekoa mine, and it had
therefore decided to make it available to other mining enterprises.
There was a bidding process, in which Aflease was chosen as the preferred
bidder, based on its ability to meet AngloGold Ashanti`s mine development and
Black Economic Empowerment requirements.
AngloGold Ashanti has applied for the conversion of the mining rights under the
Mining Charter, and these are to be ceded to Aflease.
Aflease will be purchasing those sections of the Weltevreden asset which lie
near the surface, while AngloGold Ashanti will continue to access deeper levels
from its adjacent Tau Lekoa mine.
Existing exploration data related to the property is to be shared with Aflease,
to assist in developing a mine plan, which will be based on mining the
Ventersburg Contact reef (VCR) to a depth of approximately 500m below surface.
Aflease has recently completed a milestone empowerment deal, and has announced
the RTO of SXR, which has its primary listing on the Toronto Stock Exchange.
Improved access to North American capital markets, which the SXR RTO will
facilitate, is fundamental in ensuring sufficient funding is available for the
Dominion uranium project. The new group is to be renamed SXR Uranium One Inc..
The RTO is the next strategic step in the transformation of Aflease into a
focused uranium company. Once the gold assets have reached critical mass,
Aflease is intending to separate its pure gold assets from its uranium
interests, with each having a separate listing.
The majority of Aflease shareholders are offshore. However, the Company remains
committed to South Africa. Many of the new shareholders have invested in the
Company in the expectation of a bright future for uranium, of which Aflease
holds 5% of global resources. The majority of SXR Uranium One`s assets will be
in South Africa where there will be a very strong operational base.
Aflease intends structuring 26% of the equity in this asset to BEE partners, in
the same fashion as has been applied to its Klerksdorp mine assets.
Last month Aflease returned to active mining, at its Bonanza South gold mine,
having had to suspend its operations when the strong Rand made these operations
uneconomic.
`We have now transformed our Company, we have solid assets, and we are returning
to what we do best - and that`s mining,` said Froneman.
`This new acquisition is a clear sign that we are a growth company, and we are
embarking with confidence on a new, bright era for Aflease.`
Contact Neal Froneman 083 628 0226
John Fraser 082 331 7330
Carol Smith 082 338 2228
Date: 19/07/2005 04:25:36 PM
Produced by the JSE SENS Department
