| Thu 21 Jan 2010, 17:30 | | DRD - Drdgold Buys Balance Of Ergo JV From Mintails Limited For R82 Million |
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DRD
DRDD
DRD - Drdgold Buys Balance Of Ergo JV From Mintails Limited For R82 Million
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")
DRDGOLD BUYS BALANCE OF ERGO JV FROM MINTAILS LIMITED FOR R82 MILLION
DRDGOLD announced today that it has agreed a transaction with Mintails Limited
("Mintails") worth a total of R82 088 321, in terms of which DRDGOLD will
acquire Mintails` 50% interest in Ergo Mining (Pty) Limited ("Ergo").
Ergo was created as a 50:50 joint venture by DRDGOLD and Mintails in November
2007 to explore, evaluate and process up to 1.7 billion tonnes of surface gold-,
uranium- and sulphur-bearing tailings from the East and Central Rand goldfields
of South Africa.
DRDGOLD CEO, Niel Pretorius, said: "This transaction, which I believe the market
has been anticipating, marks the next logical step in DRDGOLD`s strategy to
expand its surface tailings reclamation footprint. Gaining access to the second
CIL circuit at Ergo`s Brakpan plant effectively doubles the volume capacity to
which we have access, and provides options in respect of resources we control in
and around central Johannesburg and Boksburg."
Pretorius said that DRDGOLD would also continue to explore prospects for uranium
and sulphur production through the Brakpan plant.
DRDGOLD will settle the R82 088 321 consideration with a three-tranche payment
from its cash reserves of R62 088 321, and with its shares in the Witfontein
tailings deposition site on the far West Rand, valued at R20 million.
DRDGOLD has wholly owned the gold circuit of Ergo, now known as ErgoGold, since
December 2008, having acquired Mintails 50% interest in two separate
transactions worth a total of R277 million.
Randburg
21 January 2010
Attorneys: Levy, Feinsteins and Associates Inc
Sponsor
QuestCo Sponsors (Pty) Limited
Date: 21/01/2010 17:30:01 Produced by the JSE SENS Department.
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