Aurous, a South African gold producer, has revealed its plans to become a publicly traded company by merging with US-based Rigel Resource Acquisition Corp.
The deal values Aurous at about R6.76 billion ($ 362 million) before the investment, allowing Blyvoor to improve its underground and surface infrastructure and streamline operations for greater efficiency.
"This transaction and associated influx of foreign investment into South Africa has the potential to enable further meaningful job creation, continued revitalisation of the local community and recapitalisation of Africa’s precious metals industry, all of which we expect will be well-received by the relevant South African authorities,” said Aurous chief executive Richard Floyd.
Aurous is comprised of Blyvoor Gold Resources, Blyvoor Gold Operations, and a New York-listed company Rigel, which is a special-purpose acquisition company sponsored by a fund managed by Orion Resource Partners.
The two companies have finalised a definitive business combination agreement that will lead to Aurous becoming publicly traded.
Upon finalisation of the planned business merger, pending standard closing requirements and regulatory clearances, the new company is anticipated to be called Aurous Resources and will eventually be listed on NASDAQ.
The Blyvoor mine, located in the Witwatersrand region near Johannesburg, is the primary asset of the business and is a long-life underground gold mine.
Following the restart of Blyvoor production in 2022, Aurous has successfully re-employed approximately 1,500 workers who were previously unemployed after the mine's closure in 2013.
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
