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SXR
SXR
sxr Uranium One Inc - sxr Uranium One welcomes outcome of Sub Nigel (SBN)
shareholders" meeting on the establishment of Aflease Gold
sxr Uranium One Inc
Share code: SXR
Isins: CA87112P1062
10 January 2006
sxr Uranium One welcomes outcome of Sub Nigel (SBN) shareholders" meeting on the
establishment of Aflease Gold
sxr Uranium One Inc. (formerly Southern Cross Resources Inc.) is pleased to
inform stakeholders that shareholders of Sub Nigel today voted overwhelmingly in
favour of the merger of their company with the New Kleinfontein Gold Mining
Company, a wholly owned subsidiary of Uranium One, with 99,63% of votes in
favour of the transaction.
The merged company brings together Uranium One"s South African East Rand gold
assets with those of Sub Nigel. Sub Nigel will retain its listing on the JSE,
and will be re-named Aflease Gold. Aflease Gold will hold the high quality
Modder East project, as well as Sub Nigel"s East Rand and Free State gold
assets.
Aflease Gold will trade as AFO and will be 80% owned by Uranium One, and 20% by
Sub Nigel shareholders.
Said Uranium One CEO and President, Neal Froneman, who is also to be the new CEO
of Aflease Gold:
"Aflease Gold already has an exciting portfolio of assets, and our immediate
focus is to identify more projects like Modder East in this highly prospective
area. Our strategy remains to develop mines in this near-to-surface, low
technical risk, and high-margin mining environment.
"A bankable feasibility study on Modder East is due for completion in April, and
that will place the Board of Aflease Gold in a position to take a decision on
the project.
"This is a significant step in the consolidation of the East Rand goldfields,
and our strategy will be to continue the consolidation process as long as it is
value accretive for our shareholders.
"We will also focus on realizing the merger synergies of Modder East and Sub
Nigel, and as such we have already assembled a skilled team to run Aflease
Gold."
Froneman said "Uranium One shareholders have overwhelmingly said they want us to
focus on uranium but also retain the current gold exposure, which we do through
our 80% stake in Aflease Gold. The creation of Aflease Gold is therefore also a
further important step in the strategy of creating uranium focus in Uranium One.
Any further gold acquisitions will be done under the Aflease Gold umbrella,
using Aflease Gold equity for these acquisitions."
This transaction has crystallized the value of Uranium One"s East Rand gold
assets at approximately C$140m million (R725m), based on the closing price of
Sub Nigel on the JSE on Monday 9th January, and the transaction provides the
flexibility for Uranium One to leverage off its shareholding position in Aflease
Gold. .
The transaction is expected to be completed this month.
Forward-looking statements
This announcement contains certain forward-looking statements. These forward-
looking statements are subject to a variety of risks and uncertainties which are
beyond sxr Uranium One"s control (including among others
regulatory and shareholder approval and market fluctuations), which could cause
actual events or results to differ materially from those anticipated in such
forward-looking statements. In this announcement, predictions about the
future strategy and future consolidations are forward-looking statements.
Readers should not place undue reliance on forward-looking statements.
Notice To Investors
This announcement does not constitute an offer to sell or an invitation to
purchase or subscribe for any securities. The securities offered by way of
exchange pursuant to the Transaction have not been and will not be registered
under the U.S. Securities Act of 1933, and may not be offered or sold in the
United States absent registration or an applicable exemption from registration
requirements
Any public offering of securities to be made in the United States will be made
by means of a prospectus that may be obtained from the issuer or selling
security holder and that will contain detailed information about the company and
management, as well as financial statements.
Contact: Neal Froneman CEO Uranium One + 27 83 628 0226
John Fraser Corporate Communications + 27 82 331 7330
Carol Smith Investor Relations + 27 82 338 2228
Don Falconer Investor Relations +1 416 671 3341
Date: 10/01/2006 04:55:54 PM Produced by the JSE SENS Department
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