WRTRP acquisition approved by DRDGOLD shareholders
28 March 2018
JOHANNESBURG, SOUTH AFRICA. 28 MARCH 2018. DRDGOLD Limited (DRDGOLD; JSE, NYSE: DRD) has announced that, at a general meeting today, shareholders voted in favour of all resolutions relating to the company’s proposed acquisition of certain of Sibanye-Stillwater’s West Rand Tailings Retreatment Project (WRTRP) assets.
In terms of the key resolutions approved:
- DRDGOLD will issue approximately 265 million shares to Sibanye-Stillwater in return for the WRTRP assets, resulting in Sibanye-Stillwater holding approximately 38% of DRDGOLD;
- Sibanye-Stillwater has the option to subscribe for so many shares for cash to increase its holding in DRDGOLD to 50.1% within 24 months; and
- a mandatory offer by Sibanye-Stillwater to DRDGOLD’s other shareholders is waived.
DRDGOLD CEO Niël Pretorius says: “This transaction is a step-change for DRDGOLD. We have doubled our reserves and secured infrastructure to access these very quickly. After many years of consolidation this is a major advance towards growing our company.” Besides DRDGOLD shareholder approval, implementation of the acquisition is subject to the fulfilment or waiver of other conditions.
Updated information will be provided in due course.
Note to editors:
A more detailed announcement relating to the content of this media release can be accessed via SENS and the DRDGOLD website, www.drdgold.com. Additional information relating to the proposed transaction is also available on the DRDGOLD website.
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Forward looking statements
Many factors could cause the actual results, performance or achievements to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements, including, among others, adverse changes or uncertainties in general economic conditions in the markets we serve, a drop in the gold price, a sustained strengthening of the Rand against the Dollar, regulatory developments adverse to DRDGOLD or difficulties in maintaining necessary licenses or other governmental approvals, changes in DRDGOLD’s competitive position, changes in business strategy, any major disruption in production at key facilities or adverse changes in foreign exchange rates and various other factors. These risks include, without limitation, those described in the section entitled “Risk Factors” included in our annual report for the fiscal year ended 30 June 2017, which we filed with the United States Securities and Exchange Commission on 31 October 2017 on Form 20-F. You should not place undue reliance on these forward-looking statements, which speak only as of the date thereof. We do not undertake any obligation to publicly update or revise these forward-looking statements to reflect events or circumstances after the date of this report or to the occurrence of unanticipated events. Any forward-looking statements included in this release have not been reviewed and reported on by DRDGOLD’s auditors.