Gold One International signs financing agreement for Rand Uranium acquisition

Gold One International (ASX: GDO) has now signed financing agreements with Investec Bank for the acquisition of Rand Uranium Limited.

The acquisition for a total of US$250 million, is being made from shareholders Pamodzi Uranium Limited, Pamodzi Cooke Limited and Armgold/Harmony Joint Investment Company Limited.

Neal Froneman, Gold One President and CEO, commented, “I am pleased that we have been able to reach this milestone in the financing of the Rand Uranium acquisition.

"The financing agreement is testament to the quality of the asset as well as our relationship with the debt providers. This crucial step ensures that we remain on track to complete this acquisition by the end of this year”.

The main facility arrangements

The facility of ZAR 1.47 billion (US$210 million) consists of; a five year senior secured amortising term loan facility of up to ZAR 945 million; and a two year senior secured amortising term loan facility of up to ZAR 525 million which may be repaid through the issue of Gold One shares on the basis set out in the subscription agreement, or settled in cash at Gold One’s election.

The acquisition of Rand Uranium is still subject to the necessary consents being obtained from the Minister of the Department of Mineral Resources in South Africa.

Gold One strategy for Rand

Gold One has already outlined a plan for the Rand acquisition, with includes the creation of separate surface and underground business units.

There will be a restructure and re-focus the underground operations, with an aim of enhancing mining efficiencies - and finding the optimal mining mix.

The plan is for uranium and gold production from the Cooke Dump by 2015, along with treating all ore at Cooke Plant within twelve months.

The company also has plans to implement a uranium co-product resource optimisation strategy.

Originally published at: http://www.proactiveinvestors.com.au/companies/news/19045/gold-one-international-signs-financing-agreement-for-rand-uranium-acquisition-19045.html