change-of-control deal

By: Martin Creamer
10th May 2011
Updated 2 hours 27 minutes ago
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JOHANNESBURG (miningweekly.com) � The ASX- and JSE-listed Gold One is currently assessing a potential change-of-control transaction hot on the heels of the South Africa-focused gold company�s acquisition of Rand Uranium.

The gold mining company, headed by CEO Neal Froneman, says that the transaction could involve an offer for all Gold One shares.

It revealed this while answering another ASX query about the market communication around its offer of $250-million cash for Rand Uranium in order to increase its gold production by some 300 000 oz/y, while adding a further three-million ounces of gold mineral reserves and 13,5-million ounces of gold resources.

Gold One contends that the announcement of its Rand Uranium buy did not warrant disclosure at any earlier point, as the deal was still confidential and incomplete.

The jump in the price and trading volume of Gold One�s shares, the company says, was not as a result of the Rand Uranium deal, but rather the consequence of the Chinese Baiyin Nonferrous Metal company buying up more than 17% of its stock at A$0,53-a-share premium.

Gold One says that it is also contemplating other transactions, which are similarly being kept under wraps because of their incomplete nature.

It then let the cat out of the bag that it is at the point of assessing potential change-of-control transaction about which the company will continue to keep the market informed.

Gold One shares rose 3,9% on the JSE on Tuesday to R3,20 a share.

http://www.miningweekly.com/article/gold-one-assessing-change-of-control-deal-2011-05-10