DRDGOLD offer to purchase Mintails South African business assets conditionally accepted
29 June 2009
Johannesburg, South Africa. 29 June, 2009. DRDGOLD Limited (JSE: DRD; NASDAQ: DROOY) has announced that ASX-listed Mintails Limited (Mintails) has conditionally accepted an offer by DRDGOLD to acquire all of Mintails’ South African business assets except its interest in underground explorer West Wits Mining Limited (WWI).
DRDGOLD CEO Niël Pretorius said: “We view the implementation of this offer as an opportunity to consolidate and grow the surface mining potential of our Crown Gold Recoveries and Ergo Mining operations in South Africa’s Central and East Rand with those of Mintails in the West Rand.”
The purchase consideration under the offer is determined by the 30-day Volume Weighted Average Price (VWAP) of Mintails shares over the 30 trading days terminating on 24 June 2009, less the value of Mintails’ holding in WWI based on the WWI trading VWAP for the same 30 trading days to 24 June 2009.
DRDGOLD proposes an issue of its shares in payment for the acquisition, also calculated by a 30 trading day VWAP to 24 June 2009.
The offer is subject to:
- written approval by the Mintails Board of the offer terms by 31 July 2009;
- approval by the DRDGOLD Board of the offer terms by 31 July 2009, following a limited legal and financial due diligence;
- approval by Mintails shareholders in a general meeting and by DRDGOLD shareholders to the extent necessary by 31 August 2009.;
- execution of definitive transaction agreements relating to the offer by 31 August 2009; and
- to the extent required, all South African and Australian regulatory approvals by 31 October 2009.
As certain additional information relating to the offer is not yet available, DRDGOLD shareholders are advised to exercise caution when trading their DRDGOLD shares until a full announcement containing such information is made.
James Duncan, Russell & Associates
+27 11 880 3924 (office)
+27 82 892 8052 (mobile)