JOHANNESBURG (Dow Jones)--Aflease Gold Ltd. (AFO.JO), which is merging with smaller Australian mining company Gold One International Ltd. (GDO.AU), Thursday said its flagship project in South Africa is now fully funded after it raised 44 million rand ($5.3 million) with selected investors.
"We were always confident that we could raise the necessary capital, even in tough markets," said Chief Executive Neal Froneman.
The South African company said it issued 32.8 million shares at an average price of ZAR1.34, helping it meet cash requirements for the final stage of its Modder East project.
Aflease in November said it needed ZAR120 million to fund Modder East, and in March said it had raised ZAR89 million through a share swap with Trinity Asset management.
All conditions to Gold One's planned acquisition of Aflease have been met and Aflease said its listing in Johannesburg will be terminated May 25. The deal will effectively see Aflease's investors take control of Gold One, previously known as BMA Gold Ltd., and Froneman become CEO of the merged entity.
-By Robb M. Stewart, Dow Jones Newswires; +27 11 783 7848; [email protected]
GDO Price at posting:
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