JCI PAYS R12 MILLION OF R38 MILLION PAYMENT TO DRD
JCI PAYS R12 MILLION OF R38 MILLION PAYMENT TO DRDGOLD, BALANCE ON ITS WAY
15 March 2005 - JCI chief executive Brett Kebble said today that finalisation of an empowerment transaction around a 22 per cent stake in Matodzi Resources had caused a slight delay in the R38 million payment to DRDGold. “The funds resulting from the empowerment transaction totaling R26,5 million were to have been received yesterday and are imminent.
“Today JCI paid R12 million to DRDGold and gave DRDGold sufficient security to cover the remaining obligation,” he said. “Once we had decided not to take the matter to the Constitutional Court, we had to speed up the raising of funds for an obligation that we never felt liable to have to pay. Obviously we were hoping to avoid any delays.`
Kebble said that DRDGold’s actions in sending the sheriff to JCI’s Johannesburg head office to collect the money was: “pure theatre but obviously irresistible”.
“It is worth noting that JCI has claims way in excess of what has now been paid to DRDGold. We maintain our stance that we will resist with great fortitude any temptation to behave in the same way that DRDGold has behaved towards us,” he said.
“Our view is that DRDGold should spend more time resolving the chronic situation at its marginal mines rather than in unproductive publicity stunts.
“We are able to help DRDGold in the process of resolving its operational issues and will be making a proposal to the company shortly.
“Our fear is that DRDGold’s agenda is to close its South African mines before this can happen, which would be a great tragedy for the country and the communities who depend on them for their livelihoods.”
Issued by Marulelo Communications
On behalf of JCI Limited
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