Lexington Gold, Gold One Africa mull cooperation at their South African projects

Aim-listed Lexington Gold and its broad-based black economic empowerment partner Letsema have entered into an intention to cooperate agreement with Gold One Africa, which will see the parties seek to explore potential collaboration opportunities to enhance the financial viability and operation of certain of their respective gold projects in South Africa.

Gold One Africa, a subsidiary of Gold One Group, holds a mining right in Ventersburg, Virginia and Henneman in the Free State province, covering about 13 837 ha, while Lexington Gold, through its 74%-ownership of White Rivers Exploration, holds prospecting rights adjacent to Gold One Africa’s mining right, covering a total area of about 19 633 ha.

The planned collaboration will focus on exploring potential opportunities for shared infrastructure, management expertise, capital raising and economies of scale, with the aim of ultimately establishing and developing a high-quality gold deposit in the region.

Should discussions progress positively, areas identified for cooperation will be formalised by way of definitive agreements in due course.

“This agreement represents a potentially significant step forward in progressing our South African gold assets. Gold One Africa, with its proven record and expertise in advancing projects from exploration to production, as exemplified by its success at the Modder East gold mine, is an ideal partner.

“We believe this planned collaboration has the potential to unlock considerable value for all concerned, leveraging our combined strengths to seek to create a world-class gold resource in the Ventersburg region. We look forward to continuing our discussions and exploring the opportunities for mutual benefit and will provide updates as appropriate in due course,” says Lexington Gold chairperson Ed Nealon.