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Gold One International Director Increases Interest Ahead Of South African Uranium Acquisition

Gold One International (ASX: GDO) director Mark Wheatley has increased his indirect holding in the company, buying up a further 40,000 shares in an open market purchase.

Non-executive director Wheatley bought the shares at a price of A$0.48 each, for total consideration of $19,200.

Gold One is set to finalise the acquisition of the Ezulwini Mine in South Africa from First Uranium Corporation this month.

Ezulwini produces gold and uranium. The acquisition is expected to deliver synergies by combining Ezulwini with Rand Uranium.

Ezulwini has a new gold plant with nameplate capacity of 2.4 million tonnes per annum and a new uranium plant in place with simple, proven uranium technology and nameplate capacity of 1.2 million tonnes per annum - along with a large scale, medium depth, gold and uranium resource.

Gold One offered US$70 million for the mine, which in the local currency is around ZAR 540 million.

Megamine spin off

Gold One's Megamine Assets are due to be acquired by Goliath Gold Mining, with all conditions precedent either fulfilled or waived earlier this month.

The acquisition is now unconditional, with the Mandatory Offer to begin on Wednesday March 28, 2012.

Goliath Gold, a JSE-listed and gold focused development company, was created through the reverse acquisition of White Water Resources by wholly owned Gold One subsidiary Gold One Africa.

The enlarged and renamed White Water Resources will house Gold One's deeper level assets comprising a 12.65 million ounce Resource.

Gold One Africa will own at least 73.895% of Goliath Gold, unlocking around ZAR260 million (A$31.3 million) of value for the Megamine Assets on transfer to Goliath Gold.