South Africa’s Sibanye Gold has offered to buy Witwatersrand Consolidated (Wits Gold) for US$39mn, to enhance its footprint in the Wits Basin
The Westonaria-based company currently operates the Beatrix Gold Mine in the permit situated 240km southeast of Johannesburg.
According to Bloomberg, Sibanye chief executive officer Neal Froneman pointed out that Wits Gold, a gold and uranium explorer, had significant interests in the basin, which have been estimated to contain about 157mn ounces of reserves.
“These projects offer us an opportunity to extend the operating life of our Beatrix mine and unlock significant value in the region,” Froneman added.
Earlier this year, the company separated from Gold Fields Company. It has agreed to exchange two mining-rights portions at Beatrix with Harmony Gold, for two of its permits at its Joel mine. It has also agreed to buy a majority stake in Gold One International’s Cooke complex.
Recently, Wits Gold bid for Great Basin Gold’s Burnstone mine, which has been estimated to contain 6.4mn ounces of reserves.
“Burnstone enhances Sibanye’s existing production profile, even as we move towards shallower operations,” Froneman said.