Media releases

Village Main Reef Limited suspends financial assistance to Blyvooruitzicht Gold Mining Company Limited

Details

Published: Wednesday, 31 July 2013 02:00

DRDGOLD shareholders are referred to the announcement published by VMR on the Stock Exchange News Service of the JSE Limited on 30 July 2013 regarding VMR’s decision to suspend financial assistance to Blyvoor.

DRDGOLD shareholders (“Shareholders”) are referred to the announcement published by VMR on the Stock Exchange News Service of the JSE Limited on 30 July 2013 regarding VMR’s decision to suspend financial assistance to Blyvoor. Shareholders are also referred to the announcements, dated 8 November 2011 and 13 February 2012, which set out the terms of the disposal of DRDGOLD’s entire interest in Blyvoor to VMR.

For ease of reference, Shareholders are reminded that, with effect from 1 June 2012, Blyvoor was deconsolidated in terms of IFRS from the consolidated financial results of DRDGOLD following:

1. the transfer of board and operational control from DRDGOLD to persons nominated by VMR;
2. the sale by DRDGOLD of all loan claims against Blyvoor to VMR; and
3. the cession of all DRDGOLD’s rights and entitlements to receive any dividends declared by Blyvoor in favour of VMR (collectively referring to the aforesaid as “the Phase I Disposal”).

DRDGOLD has, since the implementation of the Phase I Disposal and the transfer of control mentioned above, not had any financial interest in or exposure to Blyvoor’s operations.

Final transfer of the DRDGOLD’s shares is pending formal, regulatory approvals, termed Phase 2 closure.

Niël Pretorius, CEO of DRDGOLD, said: “Whilst the transaction was designed to be implemented in phases, enough of the deal has been finalised for the position of DRDGOLD to have been reduced to that of “notional” shareholder and for Blyvoor to have become a subsidiary of VMR, as contemplated in the Companies Act. Hence DRDGOLD confirms that it will neither intervene nor will it provide any financial assistance to Blyvoor.”

Roodepoort
31 July 2013