Gold firms seal takeover deal

BAK · 2008-08-11T13:03:59+00:00

Hawa wanaouza kampuni wanastahili kulipia tax ya hizo 4.9 million shares zinazotumika katika ununuzi wa kapuni hiyo, lakini inawezekana kwa sababu ni 'wawekezaji' hawalipi hata senti tano Gold firms seal takeover deal By Citizen Reporter THE CITIZEN South Africa's Great Basin Gold Ltd has entered into an agreement with Dar es Salaam-based Rusaf Gold Ltd for the takeover of the company. The move will allow Great Basin Gold to purchase the remaining 63 per cent of the fully diluted equity shares of the latter for total consideration of $14.4 million (about Sh15.8 billion). This is payable in approximately 4.9 million Great Basin Gold common shares. According to reports from the company website, Great Basin Gold acquired the initial 37 per cent of Rusaf in June last year and since then has been conducting exploration in the Lake Victoria gold belt. Rusaf is a Canadian registered exploration company operating from Dar es Salaam. It has wholly owned subsidiary companies that hold prospecting rights to properties in Tanzania and Russia. Rusaf holds a number of properties, such as approximately 3,000 square kilometres in the Lupa goldfield in South Western Tanzania. A drilling program was initiated on this area in November 2006 and a secondary program commenced in May 2008. Also it holds a plot approximately 100 kilometres east of Mbeya in the Lupa South goldfield and Geita Archean Greenstone belt near Lake Victoria. On this area a drilling programme involving approximately 30 000 metres commenced on February 5, this year. Commenting on the takeover deal, president and CEO Ferdi Dippenaar said: "Following good progress made by the Rusaf team with exploration activities on the various properties, purchase of the remaining Rusaf shares became the next logical step in expanding our exploration portfolio". This acquisition is in line with the Great Basin Gold's strategic objective of expanding its asset base in Southern Africa. The Rusaf operational team will remain in place and manage the exploration activities. This will ensure that the current management teams at various operations continue with the delivery of the Burnstone and Hollister projects. Mining has become the country's major attraction of Foreign Direct Investment (FDI) during the past decade. By the end of last year the sector recorded a whopping USD 4 billion (about Sh4.6 trillion). However, following a recent report prepared by the presidential mining review committee, the sector is expected to undergo major changes in tax structures, a move that is keenly awaited by foreign investors.

Thread starter BAK
Start date Aug 11, 2008

BAK

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Gold firms seal takeover deal

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