Gold One International Limited (GDO) is pleased to announce that it has made a binding offer to acquire 100% of Rand Uranium (Proprietary) Limited for a total consideration of US$ 250 million (ZAR 1,685 million1). The binding offer has been accepted by the Rand Uranium shareholders, Pamodzi Uranium (Proprietary) Limited, Pamodzi Cooke (Proprietary) Limited and Armgold/Harmony Joint Investment Company (Proprietary) Limited. Rand Uranium is a private company that was established in 2008 when Harmony Gold Mining Company Limited, among the world’s top ten gold producers, sold the Cooke 1, 2 and 3 underground operations and the surface assets of Randfontein Estates Gold Mine (excluding the Doornkop Section) to the Sellers. Rand Uranium’s assets and operations are situated in the West Rand, 30 kilometers from Johannesburg, South Africa and has a net asset value of over US$ 500 million.
Rand Uranium is a shallow gold mining operation with a profile that fits Gold One’s stated strategy of mining shallow low technical risk gold resources. Gold One’s primary focus is Rand Uranium’s gold operations which principally include the shallow (typically 600 meters – 800 meters below surface) Cooke Operations.. Gold One’s immediate focus will be on enhancing the profitability of these existing gold operations. Gold One’s aim is to achieve this primarily by increasing recovered grades and reducing operating costs. Enhanced mining efficiencies and optimised mining mix practices will contribute to an increase in mined grades, while cost reductions are envisaged through cost synergies between existing Gold One structures and the three operating Cooke shafts. In addition, Gold One will apply its mining experience, techniques and, where appropriate, technologies successfully implemented at Modder East. Although Gold One’s short term focus is on increasing the profitability and efficiencies of the existing gold business, it recognises a substantial medium term opportunity to reduce operational risk and costs through co-product mining and optimisation.
Mr Froneman comments: “The acquisition of Rand Uranium represents a rare opportunity to purchase a well established gold business that can be commercially optimised through the implementation of uranium co-product mining. In addition, the associated surface and historic gold resources present a substantial opportunity for future production growth. The Gold One team, with its significant gold, uranium and shallow mining experience, is well placed to bring the Rand Uranium assets to account”.
Gold One is a gold producer listed on the financial markets operated by ASX Limited and the JSELimited. Its flagship operation is the newly built shallow Modder East mine on the East Rand, some 30 kilometres from Johannesburg. Modder East is the first new mine to be built in the region in 28 years and distinguishes itself from most of the other gold mines in South Africa owing to its shallow nature (300 metres to 500 metres below surface).