| Fri 17 Aug 2007, 12:59 | | DRD - DrdGold - Emperor Reports Porgera Sale Compl |
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DRD
DRDD
DRD - DrdGold - Emperor Reports Porgera Sale Completion And Emperor Capital
Return Update
DRDGOLD LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1895/000926/06)
JSE trading symbol: DRD
ISIN Code: ZAE000058723
Nasdaq trading symbol: DROOY
("DRDGOLD" or "the company")
EMPEROR REPORTS PORGERA SALE COMPLETION AND EMPEROR CAPITAL RETURN UPDATE
Emperor Mines Limited ("Emperor"), a 78.72% indirect subsidiary of DRDGOLD
listed on the ASX Limited ("ASX"), today reports the completion of the sale of
Emperor`s 20% interest in the Porgera Joint Venture ("the PJV Interest") to
Barrick Gold Corporation for a cash consideration of US$255 million ("the
Porgera transaction").
Emperor Chief Executive Officer, Brad Gordon, said today that the completion of
the sale meant that Emperor had now paid out its debt facilities in full, and
was well placed to pursue growth opportunities.
"As of today, the Company has retired all of its debt facilities, and has, as
previously announced, closed out all forward gold hedging, leaving the company
debt and hedge free and with free cash in excess of A$125 million."
"Our significant net cash position following the completion of this transaction
provides us with considerable flexibility in harnessing growth options and to
pursue select opportunities identified over recent months," Mr Gordon said.
The completion of the Porgera transaction allows Emperor to now undertake a
proposed capital return to Emperor shareholders of A$0.05c for every Emperor
ordinary share held ("the Capital Return"), which was approved by Emperor
shareholders at a General Meeting conducted on 30 July. Subsequent to the
completion of the Capital Return, Emperor anticipates holding a net cash
position in excess of A$70 million
The Capital Return was subject to the following conditions:
- Emperor shareholder approval; and
- completion of the sale of the PJV Interest in Papua New Guinea.
Following completion of the Porgera transaction, the conditions for the Capital
Return are now fully satisfied.
TIMETABLE
The Capital Return will take effect in accordance with the following timetable
approved by the ASX:
Event Date
Successful completion of sale of the Friday, 17 August 2007
PJV Interest
Emperor shares commence trading on Tuesday, 21 August 2007
"ex capital return" basis
Record Date for determining Monday, 27 August 2007
entitlements to participate in the
Capital Return
Despatch date for payment of Capital Monday, 3 September 2007
Return to Emperor shareholders
PAYMENT METHOD
The payment of the Capital Return will be satisfied by sending a cheque to those
persons who are Emperor shareholders as at the Record Date.
TAX CONSIDERATIONS FOR THE CAPITAL RETURN
Emperor is applying to the Australian Taxation Office for a Class Ruling
confirming the tax position related to the Capital Return and will notify
Emperor shareholders of the outcome of this submission in due course. It is
strongly recommended that Emperor shareholders seek their own specific taxation
advice in relation to the tax treatment of the Capital Return taking into
account their particular circumstances.
MORE INFORMATION:
Patrick Bindon - Director - Corporate Communications, Emperor Mines Limited
pbindon@emperor.com.au
Randburg
17 August 2007
Sponsor
BDO QuestCo (Pty) Limited
Date: 17/08/2007 12:59:37 Produced by the JSE SENS Department.
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