Wits Gold to pursue other opportunities
Witwatersrand Consolidated Gold Resources Limited
(Incorporated in the Republic of South Africa)
Registration Number 2002/031365/06
JSE Code: WGR
TSX Code: WGR
CUSIP Number: S98297104
TORONTO, May 31, 2012 /CNW/ - Wits Gold shareholders are referred to the announcement issued by the Company yesterday, 30 May 2012, indicating that the acquisition agreement in respect of an offer by Wits Gold and Pan African Resources plc (the "Consortium") to acquire 100% of Evander Gold Mines Limited from Harmony Gold Mining Company Limited in a 50/50 joint venture had been terminated by mutual agreement between the parties.
The process has been constructive. The Company was able to canvas and meet the majority of its shareholders and has received their support for its strategy and the right transaction.
Wits Gold's CEO, Philip Kotze, commented: "While we are disappointed that the Consortium's offer was not successful, our strategy to become a profitable mid-tier gold producer and developer to create maximum value for our shareholders remains intact.
Wits Gold will continue to actively pursue other opportunities to achieve our goal of becoming a gold producer, and we believe that our timing is apposite as we anticipate greater industry consolidation at the right price in the near term.
The pre-feasibility study for our flagship De Bron Merriespruit (DBM) Project in the southern Free State goldfield is being finalised, and the detail will be shared with the market within the next month. We also continue to advance the remaining exploration projects in our portfolio up the value curve, and expect to provide further updates in this regard during the coming quarter."
31 May 2012
JSE Sponsor to Wits Gold
PricewaterhouseCoopers Corporate Finance (Pty) Limited
Wits Gold is a gold and uranium exploration company with assets located in the Witwatersrand Basin in South Africa. Wits Gold has a primary listing on the Main Board of the JSE, and a secondary listing on the Toronto Stock Exchange and has an American Depository Receipt (ADR) programme through the Bank of New York.
For further information:
CEO: Wits Gold
+27 11 832 1749
Executive, Investor Relations: Wits Gold
+27 11 832 1749
Transaction adviser and JSE Transaction Sponsor
Macquarie First South Capital (Pty) Limited
South African legal counsel
Baker & McKenzie
Canadian legal counsel
Russell and Associates