Gold One International’s Uranium Acquisitions Funded By Investec Bank, Baiyin Nonferrous Group

Apr. 03, 2012 8:35 PM ET
Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

Short Only

Contributor Since 2009

Proactiveinvestors is a leading multi-media news organisation, investor portal and events management business with offices in New York, Sydney, Toronto, Frankfurt and London. Proactiveinvestors operates five financial websites in four languages providing breaking news, comment and analysis on hundreds of listed companies across the globe daily. We are one of the fastest growing financial media portals in the world. The group also operates hugely successful “investor forums” where three or four companies present to an audience of high net sophisticated investors, fund managers, hedge funds, private client brokers and analysts. Ian Mclelland founded Proactiveinvestors in 2006 as a way to channel his own views on companies small and mid-cap public companies. What started as a hobby quickly turned into a full time job as the website's readership exploded. One2One forums were added later in 2006, and within two years the company had expanded its operations into Canada and Australia. In 2009 the company expanded into Germany and finally into the US in 2010. Proactiveinvestors is now one of the fastest growing global financial media organizations in the world receiving more than one million visitors per month, with investor forums held across the globe on a regular basis.

Gold One International (ASX: GDO) has secured financing for two uranium acquisitions through an Investec Bank facility and a shareholder loan facility with Baiyin Nonferrous Group.

These funding agreements will support the acquisition of Rand Uranium and the purchase of Ezulwini Mining Company from First Uranium Corporation.

Gold One signed financing agreements for the Rand Uranium acquisition with Investec in August 2011, and will now settle the remaining balance of US$112 million. The total consideration for the acquisition of Rand Uranium was US$250 million.

The acquisition of Rand Uranium's mineral interests builds on Gold One's flagship Modder East mine, some 30 kilometres from Johannesburg.

With the acquisition of Rand Uranium, Gold One could log overall gold production of 300,000-350,000 ounces of gold in 2013.

Approval for the deal was received from the South African Department of Mineral Resources in December 2011.

The total funding agreement with Investec was for about US$210 million. In addition, Gold One has been granted a US$75 million unsecured shareholder loan by Baiyin Nonferrous wholly owned subsidiary Baiyin Precious Metals.

Gold One now has the ability to finalise the US$70 million payable on the completion of the acquisition of Ezulwini Mining.

Ezulwini represents an attractive economic proposition in that it provides seamless regional consolidation with Gold One's Cooke Operations.

Gold One will target reduced operating costs through shared synergies with the Cooke underground operations, while also considering a focused underground development program to ensure sustainable underground mining flexibility.

Ezulwini definitive agreement

Earlier this week, Gold One signed a definitive agreement to acquire the Ezulwini Mine in South Africa, where Ezulwini Mining produces gold and uranium.

The project hosts a Measured and Indicated Resource of over 13.2 million tonnes for 2.7 million ounces of gold and 6.6 million pounds of uranium, and an Inferred Resource of 159 million tonnes for 25.5 million ounces of gold and 189 million pounds of 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.

Gold One has entered into a binding sale of shares and claims agreement with First Uranium Corporation to acquire all the shares and claims against Ezulwini Mining, held by First Uranium's wholly owned subsidiary First Uranium Limited.

Recommended For You


To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.