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Friday, 21st November 2008 (1101 views)

South African junior gold miner Aflease Gold is merging with BMA Gold to create a new international gold business.

The new company will be known as Gold One International and will be listed on the Australian and Johannesburg stock exchanges with a total gold resource of around 15 million ounces.

Australian company BMA Gold and Aflease will transfer all their assets to the new venture and focus on the organic growth of Gold One into a geographically diversified mid-tier gold producer with an annual production of 500,000 ounces.

Gold One will own a producing mine in Modder East when it starts gold production towards the end of 2009 and a broad portfolio of projects in Australia, South Africa, Namibia and Mozambique.

Supported by the boards of both companies, the merger will see Aflease Gold chief executive Neal Froneman become head of Gold One, while BMA Gold chief executive Mark Wheatley will become the new business's non-executive chairman.

The Modder East mine 30km from Johannesburg is the first new gold mine to be developed in the East Rand Basin of South Africa's Witwatersrand for almost 30 years and has a has a probable reserve of 1.36 million ounces.

 

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