DRDGOLD Limited announced today that its 74%-owned subsidiary DRDGOLD South African Operations (Pty) Limited (DRDGOLD SA) has established a R500 million Domestic Medium Term Note Programme ("DMTN Programme") under which it may from time to time issue notes. DRDGOLD SA has successfully issued R108 million under the DMTN Programme and the different notes issued mature 12 and 24 months from the date of issue and bear interest at the three month Johannesburg Inter-bank Acceptance Rate plus a margin ranging from 4% to 5% per annum.
The proceeds from this first issue will be applied towards the capital requirements of the Crown/Ergo pipeline project. The new, 50-kilometre pipeline currently under construction and scheduled for completion by August 2011, will link two of Crowns plants with Ergo. This will provide Crown with increased tailings deposition capacity a constraint in recent times and thus the potential to extend Crowns life by bringing to account further surface tailings resources on the western and central Witwatersrand.
As part of the pipeline project, the Ergo plants second carbon in leach (CIL) circuit will be refurbished to increase capacity from 1.2Mtpm to 1.8Mtpm.
5 October 2010