Gold One International given green light to transfer Megamine assets to Goliath Gold

Gold One International (ASX: GDO) and Goliath Gold Mining have received approval from the South African Department of Mineral Resources for the transfer of Gold One’s Megamine assets to Goliath Gold.

Goliath Gold, a JSE-listed and gold focused development company, was created through the reverse acquisition of White Water Resources by wholly owned Gold One subsidiary Gold One Africa.

The enlarged and renamed White Water Resources will house Gold One’s deeper level assets comprising a 12.65 million ounce Resource.

Gold One Africa will own at least 73.895% of Goliath Gold, unlocking around ZAR260 million (A$31.3 million) of value for the Megamine Assets on transfer to Goliath Gold.

The remaining conditions precedent to the acquisition are administrative in nature and are expected to be fulfilled shortly.

Gold One and Goliath Gold have agreed to further extend the deadline to satisfy the remaining conditions precedent from 31 January to 29 February.


Gold One Growth

Gold One is continuing to grow its surface business with the announcement of a partnership with Gold Fields (JSE: GFI, NYSE: GFI, NASDAQ: GFI, Dubai: GFI) to investigate the viability of concurrently reprocessing their combined surface tailings deposits in South Africa.

Gold One and Gold Fields currently operate mines in the West Rand, a region in South Africa’s Witwatersrand Basin with a long history of gold and uranium mining.

Under the agreement, the companies will jointly investigate the feasibility of establishing a joint venture into which both parties will contribute surface assets for retreatment.

These assets are expected to comprise in excess of 700 million tonnes and represent over 60% of the total tailings material in the region.

Earlier this month Gold One completed the US$250 million acquisition of Rand Uranium.

The acquisition of Rand Uranium’s mineral interests builds on the company’s flagship Modder East mine, some 30 kilometres from Johannesburg.

With the acquisition of Rand Uranium, Gold One could log overall gold production of 300,000-350,000 ounces of gold in 2013.

Originally published at: http://www.proactiveinvestors.com.au/companies/news/24668/gold-one-international-given-green-light-to-transfer-megamine-assets-to-goliath-gold--24668.html