gold one assets sale leads to new entity

Gold One assets sale leads to new entity

Mining group Gold One has welcomed the decision by White Water Resources shareholders to buy Megamine assets, which paves the way for a new gold exploration and development company in which Gold One will own 71% of the issued share capital.
The new entity will be known as Goliath Gold Mining, which is the enlarged White Water Resources.

Gold One announced in November last year that it had reached an agreement to acquire control of White Water Resources through the sale of Megamine in exchange for about 1.04 billion White Water Resources shares valued at 0.25 cents each.

Gold One CEO Neal Froneman will lead the new entity as CEO, with Christopher Chadwick the new chief financial officer. Chadwick is currently the chief financial officer of Gold One.

Mark Wheatley will be non-executive chairman. Mark is the current non-executive chairman of Gold One.

Following the completion of the transaction and based on the closing share price on March 18 2011, Goliath Gold will have a market capitalisation of about R646 million.($92 Million)