Business
sxr Uranium One welcomes outcome of Sub Nigel (SBN) shareholders' meeting on the establishment of Aflease Gold
sxr Uranium One welcomes outcome of Sub Nigel (SBN) shareholders' meeting on the establishment of Aflease Gold.
About this update from Uranium One Mining Corp.
[{"type":"text","content":"\n\n\n\n\nTORONTO, Jan. 10 /CNW/ - sxr Uranium One Inc. (formerly Southern Cross\nResources Inc.) is pleased to inform stakeholders that shareholders of Sub\nNigel today voted overwhelmingly in favour of the merger of their company with\nthe New Kleinfontein Gold Mining Company, a wholly owned subsidiary of Uranium\nOne, with 99.63% of votes in favour of the transaction.\nThe merged company brings together Uranium One's South African East Rand\ngold assets with those of Sub Nigel. Sub Nigel will retain its listing on the\nJSE, and will be re-named Aflease Gold. Aflease Gold will hold the high\nquality Modder East project, as well as Sub Nigel's East Rand and Free State\ngold assets.\nAflease Gold will trade as \"AFO\" and will be 80% owned by Uranium One,\nand 20% by Sub Nigel shareholders.\n\nSaid Uranium One CEO and President, Neal Froneman, who is also to be the\nnew CEO of Aflease Gold:\n\n\"Aflease Gold already has an exciting portfolio of assets, and our\nimmediate focus is to identify more projects like Modder East in this highly\nprospective area. Our strategy remains to develop mines in this near-to-\nsurface, low technical risk, and high-margin mining environment.\n\"A bankable feasibility study on Modder East is due for completion in\nApril, and that will place the Board of Aflease Gold in a position to take a\ndecision on the project.\n\"This is a significant step in the consolidation of the East Rand\ngoldfields, and our strategy will be to continue the consolidation process as\nlong as it is value accretive for our shareholders.\n\"We will also focus on realizing the merger synergies of Modder East and\nSub Nigel, and as such we have already assembled a skilled team to run Aflease\nGold.\"\nFroneman said \"Uranium One shareholders have overwhelmingly said they\nwant us to focus on uranium but also retain the current gold exposure, which\nwe do through our 80% stake in Aflease Gold. The creation of Aflease Gold is\ntherefore also a further important step in the strategy of creating uranium\nfocus in Uranium One. Any further gold acquisitions will be done under the\nAflease Gold umbrella, using Aflease Gold equity for these acquisitions.\"\nThis transaction has crystallized the value of Uranium One's East Rand\ngold assets at approximately C$140m million (R725m), based on the closing\nprice of Sub Nigel on the JSE on...