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Gold One International acquisition by Chinese consortium now unconditional

Gold One International (ASX, JSE: GDO) has been informed that the conditions for the African Global Capital (NYSE:AGC) acquisition are now unconditional, signifying a major step in the completion of this process.

On May 16, Gold One invited a consortium of Chinese investors to become a long term strategic partner and major shareholder in the company in a transformational transaction.

The consortium will invest at least A$150 million (ZAR1.1 billion) to secure a 60% to 75% stake in Gold One.

As part of the transaction, the consortium, via BidCo, has made a cash offer to Gold One shareholders at A$0.55 (ZAR4.08) per share, representing a 27.9% premium to the latest closing price and 25.1% above the 30-day VWAP.

The capital injection of A$150 million through BidCo will significantly bolster Gold One’s balance sheet.

The consortium may subscribe for up to an additional 188.7 million shares in Gold One at A$0.53, should the initial subscription by the consortium and acceptances of the A$0.55 per Gold One share cash offer not result in achieving an aggregate interest of 60%.

The consortium has secured 17.64% of the company from African Global Capital.

Gold One has developed a strategy to increase the company's scale and production capacity and has identified that the consortium as an investment partner can strengthen acquisition capabilities.

The consortium will commit substantial financial and technical support to assist Gold One to realise its strategy of expanding its African portfolio of assets, and subsequently, international assets, while also enhancing access to Asian capital markets.

Gold One’s transaction advisers are Macquarie Capital Advisers and Hartleys.

To accommodate certain administrative arrangements for the payment and transfer of the AGC shares, consortium member Baiyin Non-Ferrous Group Co Limited and AGC have agreed to finalise the completion of the transaction by 15 July 2011, and amend the terms of their agreement accordingly.