South Africa's Sibanye Gold acquires 75 per cent of Gold One

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Sibanye said it would acquire the asset in exchange for around 150 million new Sibanye shares representing about 17 per cent of its share capital. 

“Sibanye Gold has entered into an agreement with Gold One to acquire its 74 per cent shareholding in, and the Gold One Group claims against, Newshelf 1114 (Pty) Limited, in exchange for approximately 150,000,000 new Sibanye Gold ordinary shares, or such number of shares that represents 17 per cent of Sibanye Gold’s issued share capital, on a fully diluted basis on the closing of the proposed transaction,” Sibanye said in a statement.

Newshelf holds a 100 per cent shareholding in Rand Uranium Limited (“RUL”) and, after the completion of an internal restructuring, will hold 100 per cent of Ezulwini Mining Company Limited (“EMC”), the activities of which companies include the Cooke Operations.

Gold One has been re-establishing the shallow Cooke Operations to produce approximately 260,000 oz of gold per annum and 570,000lb of uranium co-product per annum at an average gold operating cost of U$1,000/oz.

The Proposed Transaction is expected to enhance the attributable cash flow to Sibanye shareholders.

Sibanye Gold is expected to also benefit from the high volume tailings retreatment expertise of the Cooke Surface Operations, which are building up to approximately 400,000 tonnes per month of surface tailings by the end of 2013.

The Proposed Transaction consolidates Sibanye Gold and Gold One’s existing and historical West Rand tailings deposits for reclamation and re-treatment to recover gold, uranium and sulphur.

“Combining the significant resources and existing joint infrastructure under one group, results in material infrastructure and operational synergies,” said Sibanye. 

Gold One and its 90 per cent 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.

The BCX Consortium comprises of Baiyin Non-Ferrous Group Co. Limited, China-Africa Development Fund, Long March Capital and CITIC Kingview Capital Management Co. Limited.

Sibanye Gold and Gold One have entered into a binding agreement that, subject to fulfilment of the conditions precedent will result in the transfer of all of Gold One’s shares in, and Gold One group claims against, Newshelf, to Sibanye Gold against the allotment and issue of the Consideration Shares to Gold One.