DRDGOLD OVERREACTION TO JCI PAYMENT DISMISSED AS GRANDSTANDING
16 March 2005 - JCI chief executive Brett Kebble has dismissed a statement by DRDGold this afternoon wherein the embattled marginal miner said that it would not accept the surety which JCI had pledged for the outstanding payment on a R38 million option fee. Earlier today JCI paid R12 million to DRDGold and provided DRDGold with sufficient security to cover the remaining obligation.
“The surety that we have pledged is in the form of shares owned by JCI subsidiary companies. JCI is authorised to trade in these shares and proof of this is readily available,” said Kebble.
Sharon Wapnick, attorney for JCI Limited said that an application for liquidation on that basis would have no chance of success: “If DRDGold had any concerns about the authenticity of the surety, their lawyers would have contacted us to that effect. They have not done so.”
Kebble added that this latest act of hostility on behalf of the beleaguered miner had no validity whatsoever and was purely a tactic to distract attention from DRDGold’s own critical condition.
“This sort of behaviour is unfathomable. It is inconceivable that these kinds of tactics can be permitted when all efforts should be concentrated on saving DRD’s endangered mine. Every cent of the R38 million which DRDGold will undoubtedly get should be channeled into retrenchment packages for those of its 6000 workers facing the spectre of unemployment.
“I only hope that the R38 million will be used to relieve the plight of DRDGold’s workers and does not find its way to the already swollen packages of DRDGold executives,” said Kebble.
Issued by Marulelo Communications
On behalf of JCI Limited
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