Two of three prospecting applications to purchase the underground deposits and selected surface assets of Pamodzi Gold East Rand have been granted to Gold One International and Goliath Gold Mining.Furthermore, the acquisition of the selected surface assets has been made unconditional. Gold One CFO and Acting CEO Christopher Chadwick comments: “I am pleased that we have been able to progress the agreement and outstanding conditions with the joint provisional liquidators and bring some conclusion to a transaction that was announced over a year ago. The closure of the transaction with respect to the sale assets will enable the company to take ownership of the surface assets and commence with prospecting activities on the down dip extensions to our Modder East Mining Right.” Goliath Gold CEO Richard Stewart comments: “This is a substantial step for Goliath Gold in terms of further consolidating the East Rand Basin. We are looking forward to applying our geological and exploration experience together with the knowledge developed over the past years in the East Rand to the historical Pamodzi assets, and continuing the journey of ultimately restoring gold mining in the greater East Rand. We remain confident that the final prospecting application will be granted to Goliath Gold in the near term.” On 17 April 2012 Gold One announced that the company, together with Goliath Gold (in which Gold One holds a 72% controlling interest), had entered into an ZAR70m Acquisition Agreement with the joint provisional liquidators representing Pamodzi and its subsidiaries (the Sellers) to acquire the Grootvlei Proprietary Mines Limited (Grootvlei) treatment plant, selected Grootvlei surface assets (including primarily the Grootvlei office complex), historical geological data, and the right to apply for three prospecting rights.
Gold One was to acquire the treatment plant and surface assets together with the right to apply for a prospecting right over the down-dip extensions to Gold One’s Modder East Operations for ZAR65m. Goliath Gold was to obtain prospecting rights and acquire historical mining and geological data from Consolidated Modderfontein Mines 1979 Limited, Consolidation Modderfontein Mines Limited, Nigel Gold Mining Company (Pty) Limited and Grootvlei for ZAR5m.The original transaction has been made unconditional through an amendment to the Acquisition Agreement to comprise: An initial payment of ZAR35m for the selected surface assets and historical mining and geological data, which is now unconditional. The balance of the purchase price relating to selected surface assets and historical mining and geological data is ZAR28m – a deposit of ZAR7m having already been paid – and is payable on transfer of the immovable property. A ZAR35m payment for the prospecting rights, which will only be payable in the event that the third prospecting right is granted within 30 days of the fulfillment of the last condition precedent, which must be fulfilled on or before 31 August 2013. Should the final prospecting right not be granted, then Gold One and Goliath Gold will be exempt from payment of the ZAR35m.