| Thu 14 Jul 2011, 16:00 | | DRD - DRDGold Limited - Blyvoor Accepts Offer of Assistance from Anglogold |
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DRD
DRDD
DRD - DRDGold Limited - Blyvoor Accepts Offer of Assistance from Anglogold
Ashanti
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")
BLYVOOR ACCEPTS OFFER OF ASSISTANCE FROM ANGLOGOLD ASHANTI
DRDGOLD shareholders ("Shareholders") are advised that the Company`s distressed
operating subsidiary, Blyvooruitzicht Gold Mining Company Limited ("Blyvoor")
has accepted an offer of assistance from AngloGold Ashanti Limited ("AngloGold
Ashanti"). This offer is subject to the finalisation of a definitive agreement
between Blyvoor and AngloGold Ashanti
This development follows DRDGOLD`s announcement published on SENS on 23 June
2011 which included details that, in response to DRDGOLD`s suspension of any
further financial assistance to Blyvoor, the board of directors of Blyvoor
("Blyvoor Board") had decided to begin business rescue proceedings for Blyvoor
in terms of Chapter 6 of the new Companies Act, No. 71 of 2008, as amended
("Companies Act").
The offer of assistance from AngloGold Ashanti involves the sale to Blyvoor of
some 390 000 square metres of its neighbouring Savuka mining area for a
consideration of R35 million. This area is not within AngloGold`s current mine
planning. Pending the necessary regulatory approvals and subject to the
finalisation of a binding agreement, Blyvoor will mine the area under contract.
"We are grateful to AngloGold Ashanti for this show of good neighbourliness and
pragmatism," said Niel Pretorius, CEO of DRDGOLD.
"We believe that there may be potential for Blyvoor to generate significant
free cashflow by mining the Savuka ground, which will help to restore its `going
concern` status, an important consideration for prospective lenders and
suitors."
In terms of the provisions of Chapter 6 of the Companies Act, the Blyvoor Board
has appointed Peter van den Steen as the Business Rescue Practitioner. Working
with Blyvoor`s management team, Van den Steen has 25 working days - until 12
August - to produce a rescue plan for Blyvoor. The plan must then be presented
to and voted on by Blyvoor`s creditors.
"At this point, we are very confident the rescue process can deliver a workable
rescue plan," Pretorius said.
"A `no` vote to such a plan would mean Blyvoor`s liquidation; an outcome with
far-reaching negative consequences for all stakeholders."
Van den Steen, an MBA graduate and registered business rescue practitioner, has
extensive experience in successful business rescue processes, both in South
Africa and internationally.
Roodepoort
14 July 2011
Sponsor
One Capital
Date: 14/07/2011 16:00:02 Produced by the JSE SENS Department.
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