New gold company for SA

2010-10-13 09:23

JSE-listed Australian company Gold One International will create Goliath Gold Mining to house its mining assets in South Africa, following the reverse takeover of JSE-listed holding company White Water Resources.

Gold One said it would take control of White Water by selling its Megamine operations east of Johannesburg.

Megamine would be sold into White Water in return for more than 1?billion White Water shares, which Gold One said would create R260 million in asset value.

Goliath Gold would have a 12-million ounce gold resource.

“The transaction maintains Gold One’s focus on developing its shallow low cost ounces as well as its strong operational cash flows, while unlocking value in Gold One’s deeper resources,” said Gold One’s President and chief executive Neal Froneman.

“White Water Resources was chosen as a suitable vehicle as the company has, over the past few years, restructured itself into a focused resource company whose assets are contiguous to those of Gold One’s.”

White Water Resources chief executive Waron Mann said the company anticipated that the transaction would be beneficial to its shareholders, as it began to consolidate a prospective gold province and provided them with access to a greater resource base “as well as excellent management experience and expertise in exploration, development and mining”.

Following the completion of the deal and the restructuring of the various entities, Gold One will hold 74% of Goliath Gold, while existing shareholders of White Water Resources will own 26%.?

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