Gold One has entered into a binding letter agreement with First Uranium Corp to acquire 100% of Ezulwini Mining for a total consideration of $70m.

First Uranium currently owns all shares and shareholders’ claims against Ezulwini Mining.

The Ezulwini Mine is located in South Africa in the West Rand Goldfield of the Witwatersrand Basin and is contiguous to Gold One’s Cooke Operations.

Gold One President and CEO Neal Froneman said: "I am delighted to announce that we have reached agreement with First Uranium. This acquisition is aligned to our business strategy of value-accretive growth and is a key component in the realization 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.

"The Zuurbekom downdip extension is expected to have a material impact on the life of Cooke 1 shaft. Our Cooke Operations management team has extensive knowledge of the Ezulwini orebody and, with their gold and uranium mining experience, we are well placed to realise the inherent value from the combination of these assets."

Ezulwini is an underground mine that has two primary tabular ore bodies which are approximately 400 metres apart. The Upper Elsburg ore body, where the majority of mining has been done to date, is primarily a gold deposit.