DRD - DRDGold Limited - Ergo Transaction Receives Competition Commission
Approval
DRDGOLD LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1895/000926/06)
JSE share code: DRD
ISIN: ZAE000058723
Issuer code: DUSM
Nasdaq trading symbol: DROOY
("DRDGOLD" or "the Company")
ERGO TRANSACTION RECEIVES COMPETITION COMMISSION APPROVAL
DRDGOLD CEO Niel Pretorius commented: "Full ownership of Ergo is a major step
in our strategic shift towards lower-risk, lower-cost, higher-margin gold
production from surface sources, providing a key, logistical platform for
substantial future growth through exploitation of synergies with our Crown
surface operation. We will also continue to explore prospects for uranium and
sulphur production through Ergo's Brakpan plant."
DRDGOLD shareholders are referred to the announcement released by the Company
on 21 January 2010 wherein details of the acquisition of the 50% equity
interest of Mintails Limited ("Mintails") in Ergo Mining (Pty) Limited
("Ergo") ("the Transaction") by DRDGOLD were provided. The Company is pleased
to inform shareholders that South African Competition Commission approval has
been obtained for the Transaction.
Ergo was a 50:50 joint venture entered into between DRDGOLD and Mintails in
November 2007 to explore, evaluate and process up to 1.7 billion tons of
surface gold, uranium and sulphur-bearing tailings from the East and Central
Rand goldfields of South Africa.
DRDGOLD agreed to acquire, subject to certain suspensive conditions which
included Competition Commission approval, Mintails' 50% share in Ergo for a
total purchase consideration of R82 088 321. The purchase consideration is to
be settled through a cash payment of R62 088 321 and the balance in shares in
the Witfontein tailings deposition site on the Far West Rand valued at R20
000 000.
All the suspensive conditions relating to the Transaction have now been
fulfilled.
15 April 2010
Blackheath
Attorneys
Levy, Feinsteins and Associates Inc
Sponsor
One Capital
Date: 15/04/2010 16:00:05 Produced by the JSE SENS Department.
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