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Aflease Gold secures support of bondholders, will 'easily' raise final R30m
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10th April 2009
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Irrevocable support for the Gold One International transaction was being successfully secured from bondholders in North America and Europe and no hitches were expected in the raising of the final R30-million for the completion of the Modder East gold project, Aflease Gold CEO Neal Froneman told Mining Weekly last week.

Froneman said that the six bondholders had been engaged and majority support had been secured for the waiving of the change-of-control right.

“It’s taken longer than what we expected, but we’re well advanced. I imagine that within the next week, we’ll be able to put out an update announcement,” Froneman said.

“We could either have called a meeting of bondholders or negotiated with them individually to get their irrevocable support, and we followed the route of securing irrevocables. I’m very confident that it’s just about all done, and we’ll soon be in a position to provide clarity,” Froneman said.

The company had secured the support of four bondholders out of the six, Froneman said.

“They all support the transaction strategically and they believe it will be of benefit, but it’s a question of ironing out some of the smaller details,” he added.

The Australia-listed BMA Gold, into which Aflease was reverse listing, announced its change of name to Gold One International to the ASX on Tuesday and the process of consolidating BMA and Aflease had begun.

What remained was for the holding company, Gold One International, to conclude an inward listing on the JSE and for Aflease Gold to change its name to Gold One Africa.

“We’re hoping that it will all be done, and that we’ll be listed and trading as Gold One in both Australia and South Africa by mid-April,” Froneman said.

On the final R30-million capital needed to complete the company’s Modder East gold project, Froneman said: “It’s virtually in the bank. We’ll have no trouble raising it.”

On the possibility of disposing of Aflease gold assets, like New Kleinfontein and Turnbridge, which had been declared non-core, Froneman said that there was no need to pursue their disposal aggressively, but revealed that the JSE-listed, Trinity-backed White Water Resources was one of the parties interested in the East Rand assets. White Water, which already has Wit Nigel on the East Rand, is known also to have the troubled Pamodzi Gold’s Grootvlei gold-mine in its acquisition sights.

Edited by: Martin Zhuwakinyu


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