JSE-listed gold miner, Sibanye Gold, on Wednesday said it had made an offer to buy junior gold and uranium miner, Wits Gold, for R11.55 a share.

This can be construed as the beginning of Sibanye Gold’s strategy of chasing value adding, growth acquisitions as it has promised.

The offer was made to Wits Gold following the completion of intensive bilateral talks and a due diligence audit.

Once this deal is completed, Sibanye Gold will assume full ownership of Wits Gold, which was founded in 2003.

Sibanye Gold plans to delist Wits Gold on the Toronto Stock Exchange and JSE, Africa’s biggest bourse, once everything has been achieved.

Sibanye Gold will fund the acquisition of Wits Gold from its own resources.

In the past year, the international gold industry has been struggling due to the weak bullion price, which has sagged 25 percent during the period.

The price had been impacted negatively by the widespread labour strikes in South Africa’s gold sector.

These tough economic conditions have battered the junior gold miners like Wits Gold.