[miningmx.com] — GOLD One International announced on Thursday it has acquired total control of Rand Uranium in a $250m cash transacation.
Rand Uranium produced 163,000oz of gold in 2010 and, according to Gold One, would fit Gold One’s strategy of mining shallow, low technical risk gold resources.
“The acquisition will enhance Gold One’s production profile to some 300,000oz, while adding some 3 million ounces (moz) of gold mineral reserves as well as 13.5moz ounces of gold mineral resources,’ read a Gold One statement.
“Additionally, the acquisition of Rand Uranium will allow Gold One the opportunity to consider gold and uranium co-product optimisation when undertaking production planning, given Rand Uranium’s extensive uranium mineral resource (approximately 90 million pounds) and mineral reserve (approximately 41 million pounds).’
Rand Uranium is owned 60% by a consortium of private equity including Pamodzi Resource Fund, First Reserve Corporation and AMCI Capital, and 40% by Harmony Gold, which have all agreed to the deal.
Said John Munro, CEO of Rand Uranium: “This is a good offer and enjoys the support of our shareholders. The current conditions in the uranium market have made the standalone financing and development of our company’s uranium project challenging in the near term.’
Said Gold One CEO Neal Froneman: “The Rand Uranium operations represent one of the few established shallow gold producing operations in South Africa. The Gold One team, with its significant gold, uranium and shallow mining experience, is well placed to bring the Rand Uranium assets to account.’
The sale process is expected to take between four and six months to complete.
