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Gold One International: FIRB approval received for Chinese consortium offer

Gold One International (ASX: GDO, JSE: GDO) has ticked another box in the evolution of the company into a significant South African gold producer.

The Australian Foreign Investment Review Board (FIRB) has now approved the transaction by a Chinese consortium to become the major shareholder and long term strategic partner of Gold One.

The FIRB decision follows on from the approval by the National Development and Reform Commission (NDRC) from China, which was received earlier in the month.

In May this year Gold One announced the details of the transaction, which included a cash offer of A$0.55 per Gold One share and a minimum A$150 million capital injection into Gold One - which would secure a 60% to 75% stake.

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%.

Directors of Gold One have recommended the transaction, with the consortium previously securing 17.7% of the company from African Global Capital.

Timetable variation

Gold One has been advised by the consortium of a timetable variation, with the offer extended to Thursday 15 December 2011, (unless further extended or withdrawn).

The extension is due to the regulatory approvals in China taking longer than anticipated.