Gold One, Goliath advance plans to restore gold mining on the East Rand

JOHANNESBURG (miningweekly.com) – Dual-listed Gold One and exploration and development company Goliath Gold on Thursday said that two of three prospecting applications pertaining to the R70-million acquisition of the underground deposits and selected surface assets of the Pamodzi gold mine, on the East Rand, have been granted.

The acquisition of the selected surface assets has also been made unconditional.

Last year, Gold One and Goliath Gold entered into an agreement with the joint provisional liquidators of Pamodzi to acquire the Grootvlei treatment plant and surface assets, 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 its Modder East Operations for R65-million.

Goliath Gold, in which Gold One holds a 72% stake, was to obtain prospecting rights and acquire historical mining and geological data from Consolidated Modderfontein Mines 1979, Consolidated Modderfontein Mines, Nigel Gold Mining Company and Grootvlei for R5-million.

Gold One said that the original transaction had been made unconditional after amending the agreement to comprise an initial payment of R35-million and, with a deposit of R7-million already paid, a balance of R28-million was payable on transfer of the immovable property.

“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,” Gold One CFO and acting CEO Christopher Chadwick stated.

Goliath Gold CEO Richard Stewart added that the granting of the prospecting applications was a substantial step for the company 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,” he added.