Privately-owned Aurous has announced its intention to list South Africa’s Blyvooruitzicht (Blyvoor) mine on Nasdaq. This decision follows the mine’s acquisition by blank cheque company Rigel Resource Acquisition Company (Rigel), as disclosed on Monday.
The deal values Aurous at $362 million and aims to raise approximately $50 million before expenses. The funds will be allocated to financing production and optimization projects at the Blyvoor mine, including the development of gold tailings owned by Gauta Tailings, which is also involved in the transaction.
Under the terms of the deal, Rigel shareholders will receive cash and shares equivalent to $10 per share. Rigel is supported by Orion Resource Partners, a money manager overseeing approximately $8 billion in assets.
Blyvoor, established in 1937 with its first gold production in 1942, holds significant historical significance in South Africa’s gold mining sector. Despite facing challenges such as closure and theft after being shut down by Village Main Reef, the mine was revitalized by the late Peter Skeat, a respected figure in the gold industry.
Aurous, led by CEO Richard Floyd and executive chairperson Alan Smith, former COO of AngloGold Ashanti, fully equipped and resumed operations at Blyvoor, even amidst Covid-19 lockdowns, producing around 30,000 ounces annually.
Aurous aims to increase Blyvoor’s annual output to an average of 150,000 ounces with an all-in-sustaining-cost (AISC) of $815 per ounce, with potential additional benefits from Gauta Tailings.
The current buoyancy in gold shares, particularly rand hedge stocks like Harmony Gold and DRDGold, is attributed to a 16.7% rise in the dollar gold price over the past year, resulting in a 19% increase in rand terms.
CEO Floyd expressed optimism about the transaction, emphasizing its significance in revitalizing the South African gold industry. The deal is slated to close in the second half of this year.
