DRDGOLD Limied announced today that it is to acquire from Sibanye Gold Limited trading as Sibanye-Stillwater (Sibanye-Stillwater) portions of the latter’s West Rand Tailings Retreatment Project (WRTRP) assets – to be known as WRTRP Proprietary Limited – in exchange for approximately 38% of DRDGOLD’s ordinary share capital, valued at approximately R1.3 billion*.
Johannesburg, South Africa. 22 November 2017. DRDGOLD Limited (DRDGOLD; JSE, NYSE: DRD) announced today that it is to acquire from Sibanye Gold Limited trading as Sibanye-Stillwater (Sibanye-Stillwater) portions of the latter’s West Rand Tailings Retreatment Project (WRTRP) assets – to be known as WRTRP Proprietary Limited – in exchange for approximately 38% of DRDGOLD’s ordinary share capital, valued at approximately R1.3 billion*.
In addition, DRDGOLD and Sibanye-Stillwater have entered into an option agreement in terms of which Sibanye-Stillwater will be granted an option to increase its shareholding in DRDGOLD to 50.1% during the 24 months following implementation of the acquisition.
DRDGOLD CEO Niël Pretorius says the acquisition and option are moves towards creating “an Industry leading surface mining partnership”.
For DRDGOLD, he says, the rationale for the acquisition and option includes:
The assets to comprise WRTRP are:
Pretorius says the ultimate goal is to set up infrastructure and a mine plan designed to mine the entire resource. This is expected to take place over two phases.
The first phase will be a low-volume, self-sustaining "design and planning phase” aimed at:
As part of phase 1, it is planned to upgrade the Driefontein 2 and 3 surface plants to treat between 400 000 and 600 000 tonnes per month (tpm) from a single source.
Phase two, Pretorius says, will involve the development of a central, high-volume processing facility and new deposition site capable of processing at least 1 million tpm with a blend of material from different combinations of sources so as to produce a flat, smooth grade profile over life of mine.
*DRDGOLD’s closing share price of R4.96 on 20 November 2017 multiplied by the 265 million shares to be issued to Sibanye-Stillwater
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