JOHANNESBURG (miningweekly.com) – ASX- and JSE-listed Gold One announced on Thursday that it would raise A$37,5-million (R244-million) and that it had poured its first gold at the Modder East gold processing plant in South Africa.

The company, which was formed when South Africa’s Aflease Gold bought Australia’s BMA Gold, would place 120-million shares at R2,03 or A$0,31 a share.

Gold One CEO Neal Froneman said that it would use the funds to fast-track activities on its South African gold projects, and in particular, advance drilling and feasibility studies at its Ventersburg project.

Further, the capital raising to Australian and international institutional clients of Hartley’s would allow Gold One to offer early redemption for some of its bonds, he stated.

In a separate announcement, Gold One said that it had poured its first gold at its flagship Modder East plant, signalling the completion of the commissioning phase.

“The plant has been completed on schedule, within internal targets and well within budget.”

Gold One reported that it had started the treatment of relatively low-grade ex-surface stockpile material, containing about 1 g/t gold. It had secured a supply of 150 000 t of this material, which would be processed over the next few months.

The company said that treatment of the stockpiled Sub Nigel ore would start shortly.

“Low-grade ore has been used in the commissioning process to reduce lockup from high-grade Modder East material and to significantly reduce the risk of gold losses to tailings from high-grade material during start-up. The commissioning focus will shift to increasing throughput by ironing out bottle necks and to improve performance and recoveries,” Gold One said in a statement.

Gold One also reported that the last blast had taken place in the development of its 345-m deep vertical shaft at Modder East on June 18.

The vertical shaft would primarily be used for personnel access and ventilation and was expected to lower operating costs and improve efficiency of people logistics.

Gold One would now start the equipping of the shaft. Permanent headgear and the winder house would be placed onto its permanent foundations above the vertical shaft after equipping is completed in October.

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