https://www.engineeringnews.co.za

Wits Gold gets approval to buy Burnstone

19th July 2013

By: Natasha Odendaal

Creamer Media Senior Deputy Editor

  

Font size: - +

JSE-listed Witwatersrand Consolidated Gold Resources (Wits Gold) said last week it had received approval to buy the struggling Burnstone mine, in Mpumalanga.

The company said in a statement that the required number of Southgold creditors voted in favour of Wits Gold’s proposed business plan for the embattled Great Basin Gold’s (GBG’s) suspended Burnstone gold operation.

The plan incorporated Wits Gold’s proposed offer to acquire the sale shares in and sale claims against Southgold.

Wits Gold said it would now progress towards the finalisation of definitive transaction agree-ments.

Wits Gold would pay $7.25-million in cash towards GBG’s South African subsidiary Southgold Exploration’s debt, which was restructured and cut by 55% to $177.35-million.

Southgold would, from generated actual cash flow, repay the remaining $170.1-million liability.

Wits Gold would also advance a $100-mil-lion shareholder loan with an interest rate of 4%, which was also to be paid back on a pre-ferential basis from Southgold’s operating cash flow.

Edited by Martin Zhuwakinyu
Creamer Media Magazine Managing Editor

Article Enquiry

Email Article

Save Article

Feedback

To advertise email advertising@creamermedia.co.za or click here

Showroom

Rentech
Rentech

Rentech provides renewable energy products and services to the local and selected African markets. Supplying inverters, lithium and lead-acid...

VISIT SHOWROOM 
VEGA Controls SA (Pty) Ltd
VEGA Controls SA (Pty) Ltd

For over 60 years, VEGA has provided industry-leading products for the measurement of level, density, weight and pressure. As the inventor of the...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







301

sq:0.045 0.838s - 122pq - 2rq
Subscribe Now