The document outlines DRD’s unconditional Offer which was announced on 12 January 2000.
The Offer consists of 1 DRD share and A$0.80 cash for every 9 Dome shares held. This equates to an offer price of approximately A$0.35 based on DRD's closing price on NASDAQ (being DRD's principal trading market) on 11 January 2000, being the date immediately prior to the announcement of the Offer. This represents a 38% premium over the closing price of Dome shares on the same date of A$0.255 and was 22% higher than the highest closing price of Dome shares on the ASX over the preceding three years.
More recently, DRD shares closed on NASDAQ on 10 March 2000 at the A$ equivalent of A$2.44 and A$2.30 on the Australian Stock Exchange. This equates to an approximate offer price per Dome share of A$0.36 and A$0.34 respectively, compared to Dome’s closing share price on Friday of A$0.305.
The Offer is currently scheduled to close on 13 April 2000, unless extended by DRD.
The Chief Financial Officer of DRD and Chief Executive Officer of DRD’s Australasian Operations, Mr Charles Mostert, said: "DRD will work hard to add significant value to Dome’s Tolukuma Gold Mine in Papua New Guinea. The mine is a high grade, low cost underground operation which suits our expertise and style of investment in Australasia. We believe we can apply DRD’s extensive experience in underground mining to the Tolukuma project, and would aim to reduce production costs and increase mine profits."
"We believe the offer is attractive given the premium offered to Dome shareholders and the opportunity to share in DRD’s expansion into the Australasian region", Mr Mostert said.
Last year Tolukuma produced approximately 80,000 ounces of gold equivalent at a cash cost of A$263/oz and had total resources of 590,000 ounces of gold and 2.1 million ounces of silver.
DRD has obtained the necessary approvals for the Offer from DRD shareholders and the Australian Foreign Investment Review Board, while in principle approval has been received from the appropriate Papua New Guinea authority.
The Offer is now unconditional, such that Dome shareholders will receive their consideration within five business days after their acceptance is received.
DRD is a substantial growth oriented South African gold mining company, whose main activities are deep level gold mining, the processing of tailings material and open pit mining.
Current annual gold production is approximately 1.2m ounces, from 26 million tonnes of plant throughput from its six gold operations in South Africa. DRD provides employment to approximately 20,000 employees, including approximately 7,500 contractors.
DRD shares are tradeable on a range of international markets including the Australian, Johannesburg, London and Brussels stock exchanges, NASDAQ in the United States (through its depository receipts programme), the Paris Bourse and the Berlin OTC market.