TUESDAY, 7.00PM
GENCOR and Gold Fields of SA on Tuesday announced detailed terms of their merger into a single giant gold mining company, Goldco. The announcement follows last-minute attempts by rival mining house Anglo American to scupper the deal by blocking the use of Driefontein mine as the vehicle for the merger.
The two companies revealed on Tuesday that they have formed a new company, Gold Shelf One (Goldco), at present wholly owned by Gold Fields, as the vehicle for the proposed formation of Goldco.
Goldco will issue shares to acquire and hold the respective gold assets of Gencor and Gold Fields. In addition, New Wits will contribute its mineral rights and its shares in Driefontein and Kloof in exchange for shares in Goldco.
The announcement says the goal is to create a “focused multinational gold mining company, which will provide the platform to optimise the existing operations and to develop the potential associated with the exploration assets and mineral rights contributed by the two parties.”
In terms of the deal:
Goldco will acquire the following principal assets from Gold Fields: