Sibanye Gold announces new deal

2013-08-21 10:47

Sibanye Gold has reached an agreement with Gold One International Limited (Gold One) to acquire its Cooke underground and surface operations.

The transaction positions Sibanye Gold to reclaim the 6.4 million ounces of gold and 55 million pounds of uranium co-product contained in historical West Rand tailings deposits owned by the parties.

“This is a cash flow accretive transaction for Sibanye Gold that will impact positively on projected cash flow per share,” Sibanye Gold CEO Neal Froneman said in a statement today.

Gold One has over the last 18 months been re-engineering the shallow Cooke operations and plans over the next five years to produce on average 260 000 ounces of gold per annum and 57 000 pounds of uranium co-product per annum at an average cash cost of $1 000 per ounce.

In terms of the agreement, Sibanye Gold proposes to acquire Gold One’s 74% shareholding in, and the Gold One Group claims against, Newshelf 1114 (Newshelf).

Newshelf holds a 100% shareholding in Rand Uranium Limited and, after the completion of an internal restructuring, would hold 100% of Ezulwini Mining Company Limited, the activities of which companies include the Cooke Operations.

“Gold One and its 90% shareholder, the Chinese BCX Consortium, will be an anchor shareholder with a long term investment horizon, which will support Sibanye Gold’s long term growth strategy,” Froneman said.

He said the addition of the Cooke operations to the Sibanye Gold portfolio could potentially create the largest surface retreatment project in South Africa and provides Sibanye Gold shareholders with exposure to a low cost gold and uranium project.

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