South African miner, Sibanye Gold says it has finalised agreement with Gold One International to acquire its Cooke underground and surface operations.

In an official statement, Sibanye revealed that the in deal – which the parties expect will close in about six months, Gold One will receive 150-million Sibanye Gold shares — equating to a 17 percent stake — in exchange for its assets on the West Rand.

Gold One disclosed that the last 18 months had been used in re-engineering the shallow Cooke mines and has now developed detailed plans to produce on average 260,000 ounces of gold per annum and 570,000 pounds of uranium co-product per annum at an average cash cost of $1,000/oz.

The CEO of Sibanye Gold, Neal Froneman said “This is a cash flow accretive transaction for Sibanye Gold that will impact positively on projected cash flow per share.”

The transaction also positions Sibanye Gold to reclaim the 6.4 million ounces of gold and 55 million pounds of uranium co-product contained in historical West Rand tailings deposits owned by the parties.

These resources will be capable of supporting additional gold production of up to 300,000 ounces of gold per annum with uranium as a co-product.

Sibanye Gold is a South African gold mining company comprising three principal operations, namely Kloof and Driefontein in the West Wits area and Beatrix in the Free State and is considered one of the largest gold producers in South Africa and among the top 10 largest gold producers globally.

“The addition of the Cooke Operations to the Sibanye Gold portfolio could potentially create the largest surface retreatment project in South Africa and provides Sibanye Gold shareholders with exposure to a low cost gold and uranium project”, Froneman said.