Gold One granted $65m loan facility

[] — GOLD ONE INTERNATIONAL LIMITED has received credit approval from two leading international banks – Absa Capital and BNP Paribas – for a $65m loan facility.

Gold One believes a debt facility is the most effective form of refinancing the company’s convertible bonds and that it presents the best bond refinancing option for existing shareholders.

The loan will ensure Gold One has the capacity to refinance all of its convertible bonds in December 2010, should its bondholders exercise their once-off put option.

The facility has a maximum term of four-and-a-half-years with interest and capital payments only commencing in June 2011.

Capital payments will be structured to take into account the ramp up of production at Modder East.

The facility will bear interest at a market related rate based on USD London Interbank Offered Rate (Libor), which is currently 0.3%. Gold One will enter into a hedging program typical for a facility of this nature.

The advance of the facility is subject to the conclusion of legal documentation and the fulfillment of certain conditions precedent.

Key outstanding conditions precedent include the amendment of and obtaining of consent for the cession of several agreements of the Modder East mine; the obtaining of certain additional insurances commonly required for a project finance facility; and exchange control approval from the South African Reserve Bank for a US dollar denominated loan.

Gold One President and CEO Neal Froneman said the facility provides much needed certainty around the refinancing of the convertible bonds.

“We have always maintained that a pure debt facility is the most appropriate solution given the solid fundamentals of our flagship Modder East mine, which underpins the loan facility. Our next stage will be to ensure we receive a firm commitment from our bondholders as to what their intentions are, whereafter the company will be able to focus fully on strategic initiatives currently underway.”