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AFO
AFO
Aflease Gold announces the acquisition of Randgold and Exploration shares
Aflease Gold Limited
(Formerly Sub Nigel Gold Mining Company Limited)
(Incorporated in the Republic of South Africa)
(Registration number 1984/006179/06)
Share Code: AFO & ISIN Code: ZAE000075867
("Aflease Gold" or "the Company")
Johannesburg, South Africa June 23 - sxr Uranium One Inc. (Uranium One) today
announced the purchase by its 79% held Aflease Gold Limited (Aflease Gold)
subsidiary of an approximate 10% to 17.4% stake in Randgold and Exploration Ltd.
(Randgold).
This will bring the total percentage of shares held by both Uranium One and
Aflease Gold to between 22% and 29.4%.
The Share Swap Transaction will increase Aflease Gold"s asset base, give the
company additional financing flexibility to develop its assets and enhance the
liquidity of its ordinary shares. In addition, the combined interest in
Randgold of Aflease Gold and Uranium One is expected to enable the two companies
to play a significant role in facilitating a resolution of the claims between
Randgold and JCI in a fair and equitable manner.
Aflease Gold intends to hold its Randgold shares for investment purposes pending
satisfactory resolution of the claims by and against Randgold. In that regard,
Aflease Gold intends to be supportive of all steps directed at securing full
value for Randgold"s shareholders, whether through the sale or liquidation of
its investments, including its shares in Western Areas, or otherwise.
The Transaction is dependent on a few conditions precedent including the
settlement by Randgold and JCI of the outstanding claims with one another.
Until all settlements between Randgold and JCI have been concluded, Aflease Gold
will hold in escrow 30% of those shares with which it is funding the
Transaction.
Said Aflease Gold CEO Neal Froneman (who is also President and CEO of Uranium
One):
"While the recent history of Randgold and Exploration has been a troubled one,
we believe the company has a worthy asset in terms of its claims against JCI and
in its investment in Western Areas. This Transaction will enable Aflease Gold
to play a central role in the settlement of the current disputes, with the aim
of securing full value for all shareholders of Randgold and Exploration. We
would not be uncomfortable if at the end of this process we were to end up with
a direct stake in Western Areas. This would boost the growth of Aflease Gold,
and would help to position us as an important future player in the gold industry
in Southern Africa."
sxr Uranium One currently owns 12% of Randgold.
About sxr Uranium One
sxr Uranium One Inc. is a Canadian uranium and gold resource company with a
primary listing on the Toronto Stock Exchange and a secondary listing on the
Johannesburg stock exchange. The Corporation owns the Dominion Uranium Project
in South Africa and the Honeymoon Uranium Project in South Australia, as well as
a number of exploration projects. The Corporation holds a 79% interest in
Aflease Gold Limited, which owns the Modder East gold project in South Africa.
Through a joint venture with Pitchstone Exploration Ltd., the Corporation is
also engaged in uranium exploration activities in the Athabasca Basin of
Saskatchewan.
About Aflease Gold
Aflease Gold was formed in January this year through the reverse takeover of Sub
Nigel Limited by the New Kleinfontein Mining Company, which was itself a 100%
owned subsidiary of Uranium One. Aflease Gold has a primary listing on the JSE
Limited (Johannesburg Stock Exchange) and an ADR programme with the Bank of New
York.
For further information please contact:
Neal Froneman John Fraser Chris Sattler
Chief Executive Officer Corporate Communications Vice President, Investor
Relations
Tel: + 27 11 482-3605 Tel: + 27 11 482-3605 Tel: +1 416 350-3657
Cautionary note concerning forward-looking statements: Statements in this
release that are not historical facts are "forward-looking statements" involving
known and unknown risk and uncertainties which are beyond the ability of the
Corporation to control or predict and which could cause actual events or results
to differ materially from those anticipated in such forward-looking statements.
Date: 23/06/2006 12:57:44 PM Produced by the JSE SENS Department
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