Gold One International completes sale of Ezulwini Mine

24 July 2012 (Last Updated July 24th, 2012 18:30)

Gold One International has completed the acquisition of First Uranium, the holding company of Ezulwini Mining, for $70m.

Gold One International has completed the acquisition of First Uranium, the holding company of Ezulwini Mining, for $70m.

The company said that all conditions precedent to the sale of shares and claims agreement for the purchase of 100% of the shares in the capital of and shareholder claims against First Uranium have been met.

The acquisition is expected to be implemented on 1 August 2012.

A total of $5m of the purchase price will be held in escrow for a period of six months in line with the provisions of the acquisition agreement.

This deferred payment will be released to First Uranium at the end of the escrow period.

Gold One President and CEO Neal Froneman said the acquisition is aligned to its business strategy of value-accretive growth and is a key component in the realisation of synergies across the Cooke Underground and Randfontein Surface Operations.

"With immediate access to Ezulwini's uranium processing facility, we can now look towards unlocking the value of our joint underground resources and begin capitalising on our gold and uranium co-product strategy in the near term," said Froneman.

"The Cooke Operations' management team, with their extensive knowledge of the Ezulwini ore body, people and processes, are well prepared for the integration of Ezulwini into Cooke Underground Operations."