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Uranium One Announces Aflease Gold Agreement to Acquire Shares of Randgold and Exploration
Uranium One Announces Aflease Gold Agreement to Acquire Shares of Randgold and Exploration.
About this update from Uranium One Mining Corp.
[{"type":"text","content":"\n\n\n\n\nTrading Symbol: SXR - The Toronto Stock Exchange\n\nTORONTO and JOHANNESBURG, SOUTH AFRICA, June 26 /CNW/ - sxr Uranium One\nInc. announced today that its 79%-owned subsidiary, Aflease Gold Limited, has\nentered into a share exchange agreement with a South African institution under\nwhich Aflease Gold will acquire at its election not less than 7,500,000 and\nnot more than 13,000,000 shares of Randgold and Exploration Ltd. (\"Randgold\").\nIn consideration for the Randgold shares, Aflease Gold will issue from\ntreasury on closing a number of shares equal to seven times the number of\nRandgold shares it elects to acquire and, on a second closing, will issue\nadditional shares pursuant to a formula if Randgold's net asset value, when\nthis is in due course determined, exceeds Rand 14.70 (Cdn $2.29) per share. A\nmaximum of three times the number of elected Randgold shares is issuable on\nsuch second closing if Randgold's net asset value exceeds Rand 21.00 (Cdn\n$3.28) per share. The agreement is conditional on, among other things, JCI\nLimited confirming to Aflease Gold that the unconditionally net recoverable\nindebtedness of JCI and its subsidiaries to Randgold and its subsidiaries is\nnot less than Rand 1.1 billion (Cdn $176.6 million). Closing is subject to\nJohannesburg stock exchange approval and to the shareholders of Aflease Gold\napproving a resolution increasing the company's authorized share capital.\nUranium One has advised Aflease Gold that it intends to vote in favour of such\nresolution.\nCompletion of the share exchange transaction will increase Aflease Gold's\nasset base, give it additional flexibility with respect to the financing of\nits assets, including the Modder East Gold Project, and enhance the liquidity\nof its ordinary shares. While the transaction will reduce Uranium One's\ninterest in Aflease Gold, Uranium One will continue to own a majority of\nAflease Gold's issued ordinary shares.\nThe acquisition will give Aflease Gold an equity interest in Randgold of\nbetween 10.0% and 17.4%, which will complement Uranium One's existing 11.6%\ninterest in Randgold. The combined stake in Randgold is expected to enable the\ntwo companies to play a significant role in facilitating a resolution of the\ncurrent claims between Randgold and JCI, with the aim of securing full value\nfor the shareholders of Randg...