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DRD
DRDD
DRD - DRDGOLD Limited - DRDGOLD sells certain underground prospecting rights to
White Water Resources Limited
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 SELLS CERTAIN UNDERGROUND PROSPECTING RIGHTS TO WHITE WATER RESOURCES
LIMITED ("WHITE WATER")
DRDGOLD shareholders are advised that the Company has signed heads of agreement
with JSElisted White Water in terms of which White Water will acquire from
DRDGOLD`s 74%owned subsidiary, East Rand Proprietary Mines Limited ("ERPM"), the
prospecting right over ERPM Extensions 1 and 2 and the mining right over ERPM
Extension 1 ("the Transaction").
ERPM`s mining right application over Extension 1 is pending.
Both extensions are contiguous to the ERPM lease area. Underground mining at
ERPM was discontinued in November 2008.
The acquisition by White Water of the prospecting right over ERPM Extensions 1
and 2 and the mining right over ERPM Extension 1, for R18.5 million, will be
settled through the issue of 74 million ordinary shares in White Water and 26
shares in a special purpose vehicle ("SPV") to be created which will hold the
assets acquired by White Water from ERPM in terms of the Transaction.
In the event that the Department of Mineral Resources does not approve transfer
of one or other of the prospecting or mining rights the consideration will be
reduced to R9.3 million to be settled through the issue of 37 million ordinary
shares in White Water and 26 ordinary shares in the SPV to ERPM.
The Transaction is subject to the successful conclusion of various conditions
precedent, including approval of the Transaction by White Water shareholders.
The Transaction is not a categorised transaction for DRDGOLD in terms of the
Listings Requirements of the JSE Limited.
DRDGOLD`s Chief Executive Officer Niel Pretorius said: "Our stated strategy is
to move increasingly towards gold recovery from re-treatment of surface
tailings; the deep-level exploration assets we propose disposing of are much
better placed in the portfolio of White Water, whose business is gold
exploration."
Constantia Kloof
30 June 2010
Sponsor: One Capital
Date: 30/06/2010 12:05:01 Produced by the JSE SENS Department.
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