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.