Vancouver-based Northern Orion Explorations (NNO-T) has inked an agreement to acquire a 100% interest in Ditchburn Management, which holds a 12-month option to acquire up to a 90% stake in President Steyn Gold Mines, a South African mid-tier gold producer listed on the Johannesburg Stock Exchange.
Under the deal to acquire Ditchburn, Northern Orion would issue between 93.6 million and 201 million shares, depending on the assets remaining in President Steyn Gold Mines at the time of closing. Orion is currently negotiating a separate deal for PS Gold’s operating assets.
The deal is subject to ongoing due diligence, the settlement of formal agreements, regulatory and other approvals. Orion must also secure financing to exercise the Ditchburn option.
Under the option deal, Orion would be able to acquire, for no more than 8 per share, up to 450 million ordinary shares, or 90% of PS Gold’s issued and outstanding shares.
PS Gold’s mining operations, some 190 km southwest of Johannesburg, are adjacent to other large operating mines and host five production shafts and significant infrastructure. During the first half of 2001, PS Gold produced 89,154 oz. of gold at a total cost of US$221 per oz.
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