Shareholders of Aflease Gold and Uranium Resources (AFLUY-Q, AFL-J) and Southern Cross Resources (SXR-T) have approved the planned merger of the two companies that will bring the South African gold and uranium developer onto the Toronto board.
The new company, SXR Uranium One (SXR-T) will have a primary listing in Toronto and a secondary listing in Johannesburg. Aflease shareholders will own 83% of the new company, receiving 9 SXR shares for one Aflease.
Southern Cross shareholders approved a one-for-five consolidation of their shares as part of the merger.
Neil Froneman and Jean Nortier of Aflease will be chief executive and chief financial officer of SXR, and Southern Cross’s chief executive Mark Wheatley will be a non-executive director. Aflease will put Froneman and two other directors on the board, which will also have three independent directors. One of those will be chairman.
Aflease brings in the Rietkuil and Dominion uranium projects in the Witswatersrand basin in South Africa. Rietkuil has a measured and indicated resource of 417,000 tonnes at 0.73% U3O8 and Dominion 6.3 million tonnes at 0.65% U3O8. Inferred resources on the two properties add up to 80 million tonnes at 0.64% U3O8.
Southern Cross contributes its four uranium properties in South Australia, the most advanced of which is Honeymoon, with an indicated resource of 2.8 million tonnes averaging 0.12% U3O8. The company is currently working on a development plan for an in-situ leach uranium mine there.
Southern Cross’s three other South Australian properties have resource estimates on them, and Southern Cross is also earning a 50% interest in properties held by Pitchstone Exploration (PXP-T) in northern Saskatchewan.
Aflease also holds the Modder East gold project, also in the Wits basin, where there is a measured and indicated resource of 17 million tonnes grading 3 grams gold per tonne.
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