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GDO - Gold One International Limited - Price and volume query received from ASX
Limited
Gold One International Limited
(Previously BMA Gold Limited)
Registered in Western Australia under the Corporations Act, 2001 (Cth)
Registration number ACN: 094 265 746
Registered as an external company in the Republic of South Africa
Registration number: 2009/000032/10
Share code on the ASX/JSE: GDO
ISIN: AU000000GDO5
OTCQX International: GLDZY
("Gold One" or the "company")
PRICE AND VOLUME QUERY RECEIVED FROM ASX LIMITED
Shareholders are advised that Gold One has received a query from the ASX Limited
in respect of the recent price and trading volume increase in the company`s
securities.
The query together with the company`s response thereto is set out below.
QUOTE
PRICE AND VOLUME QUERY
We have noted a change in the price of the Company`s securities from a closing
price of $0.32 on 16 March 2011 to an intra day high today, Wednesday 30 March
2011 of $0.43 We have also noted an increase in the volume of trading in the
securities over this period.
In light of the price and volume change, please respond to each of the following
questions.
1. Is the Company aware of any information concerning it that has not been
announced which, if known, could be an explanation for recent trading in the
securities of the Company'
Please note that as recent trading in the Company`s securities could indicate
that information has ceased to be confidential, the Company is unable to rely on
the exceptions to listing rule 3.1 contained in listing rule 3.1A when answering
this question.
2. If the answer to question 1 is yes, can an announcement be made immediately'
If not, why not and when is it expected that an announcement will be made'
Please note, if the answer to question 1 is yes and an announcement cannot be
made immediately, you need to contact us to discuss this and you need to
consider a trading halt (see below).
3. Is there any other explanation that the Company may have for the price and
volume change in the securities of the Company'
4. Please confirm that the Company is in compliance with the listing rules and,
in particular, listing rule 3.1.
Your response should be sent to me by email to Elizabeth.Harris@asx.com.au or by
facsimile number on (08) 9221 2020. It should not be sent to the Company
Announcements Office.
Unless the information is required immediately under listing rule 3.1, a
response is requested as soon as possible and, in any event, not later than 4:00
pm (W.S.T.) today Wednesday, 30 March 2011.
Under listing rule 18.7A, a copy of this query and your response will be
released to the market, so your response should be in a suitable form and
separately address each of the questions asked. If you have any queries or
concerns, please contact me immediately.
Listing rule 3.1
Listing rule 3.1 requires an entity to give ASX immediately any information
concerning it that a reasonable person would expect to have a material effect on
the price or value of the entity`s securities. The exceptions to this
requirement are set out in listing rule 3.1A.
In responding to this letter you should consult listing rule 3.1 and Guidance
Note 8 - Continuous Disclosure: listing rule 3.1.
If the information requested by this letter is information required to be given
to ASX under listing rule 3.1 your obligation is to disclose the information
immediately.
Your responsibility under listing rule 3.1 is not confined to, or necessarily
satisfied by, answering the questions set out in this letter.
Trading halt
If you are unable to respond by the time requested, or if the answer to question
1 is yes and an announcement cannot be made immediately, you should consider a
request for a trading halt in the Company`s securities. As set out in listing
rule 17.1 and Guidance Note 16 - Trading Halts we may grant a trading halt at
your request. We may require the request to be in writing. We are not required
to act on your request. You must tell us each of the following.
- The reasons for the trading halt.
- How long you want the trading halt to last.
- The event you expect to happen that will end the trading halt.
- That you are not aware of any reason why the trading halt should not be
granted.
- Any other information necessary to inform the market about the trading
halt, or that we ask for.
The trading halt cannot extend past the commencement of normal trading on the
second day after the day on which it is granted. If a trading halt is requested
and granted and you are still unable to reply to this letter before the
commencement of trading, suspension from quotation would normally be imposed by
us from the commencement of trading if not previously requested by you. The same
applies if you have requested a trading halt because you are unable to release
information to the market, and are still unable to do so before the commencement
of trading.
RE: PRICE AND VOLUME QUERY
In reply please see the following responses to your questions:
1. Is the Company aware of any information concerning it that has not been
announced which, if known, could be an explanation for recent trading in the
securities of the Company'
Please note that as recent trading in the Company`s securities could indicate
that information has ceased to be confidential, the Company is unable to rely on
the exceptions to listing rule 3.1 contained in listing rule 3.1A when answering
this question.
The Company notes the increase in the price and trading volume of its securities
on ASX over the period referred to in your letter.
The Company considers that the increase in price and trading volume are the
result of a combination of factors, including:
(a) the recent announcement of strong operational performance, evidenced by the
fact that the Company is on target to exceed its first quarter production target
(announced 14 March 2011);
(b) the positive response to recent international roadshows and presentations by
the Company (presentation slides released on 16 March and 30 March 2011);
(c) the shareholder approval of the Goliath Gold transaction, and confirmation
of the creation of Goliath Gold Mining limited, a new gold exploration and
development company controlled by the Company (announced 22 March 2011); and
(d) a recognition that the value currently ascribed to Gold One by the market
may be considered low in comparison with that of peer group companies.
In addition to its operational activities, the Company has under contemplation
from time to time various initiatives to enhance shareholder returns, including
corporate transactions. In the Company`s view, all such transactions currently
under contemplation are both confidential and not at a stage to warrant
disclosure because of their incomplete nature.
For example, Gold One is currently assessing a potential acquisition
transaction, and also a potential change of control transaction for the Company
which, if it were to proceed, could involve an offer to Gold One shareholders to
acquire all of their shares, on terms and conditions yet to be determined.
At this stage, no binding arrangements have been entered into in relation to the
potential transactions referred to above, and the Company can give no assurance
that any transaction will eventuate from those currently under contemplation.
The Company will continue to keep shareholders and the market informed.
The Company has appointed advisers in relation to the potential transactions
referred to above.
2. If the answer to question 1 is yes, can an announcement be made immediately'
If not, why not and when is it expected that an announcement will be made'
Please note, if the answer to question 1 is yes and an announcement cannot be
made immediately, you need to contact us to discuss this and you need to
consider a trading halt.
See answer to 1 above.
3. Is there any other explanation that the Company may have for the price and
volume change in the securities of the Company'
No, the Company does not have any explanation other than as set out in 1 above.
4. Please confirm that the Company is in compliance with the listing rules and,
in particular, listing rule 3.1.
The Company confirms that it is compliant with the listing rules, and in
particular, listing rule 3.1.
UNQUOTE
Issued by Gold One International Limited
Website: www.gold1.co.za
Parktown, Johannesburg
31 March 2011
JSE SPONSOR
Macquarie First South Advisers (Pty) Limited
Neal Froneman President and CEO
+27 11 726 1047 (office) +27 83 628 0226 (mobile)
neal.froneman@gold1.co.za
Ilja Graulich Investor Relations
+27 11 726 1047 (office) +27 83 604 0820 (mobile)
ilja.graulich@gold1.co.za
Carol Smith Investor Relations
+27 11 726 1047 (office) +27 82 338 2228 (mobile)
carol.smith@gold1.co.za
Derek Besier Farrington National Sydney
+61 2 9332 4448 (office) +61 421 768 224 (mobile) derek.besier@farrington.com.au
About Gold One
Gold One is a gold producer listed on the financial markets operated by the ASX
Limited and the JSE Limited, issuer code GDO. Its flagship operation is the
newly built shallow Modder East mine on the East Rand, some 30 kilometres from
Johannesburg.
Modder East is the first new mine to be built in the region in 28 years and
distinguishes itself from most of the other gold mines in South Africa owing to
its shallow nature (300 metres to 500 metres below surface). To date Modder East
has provided direct employment opportunities for over 1,100 people. Gold One
also owns the nearby existing Sub Nigel mine, which is used primarily as a
training centre in the buildup of Modder East to full production. Gold One`s
other projects and targets include Ventersburg in the Free State Goldfields, the
Tulo concession in Mozambique and the Etendeka greenfield project in Namibia.
Gold One has an issued share capital of 807,080,905 shares.
Date: 31/03/2011 07:39:33 Supplied by www.sharenet.co.za
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