Mining company DRDGold Limited said on Monday it was finalising the projected figures of a proposed R1.3 billion deal with Sibanye-Stillwater to acquire gold tailings in the West Rand surface mining operations in Gauteng.
“Shareholders are advised that the pro forma financial effects of the proposed transaction are still being finalized,” DRDGold said in a statement.
In November, DRDGold said it would acquire portions of Sibanye-Stillwater’s West Rand Tailings Retreatment Project (WRTRP) assets in exchange for approximately 38 percent of DRDGold’s ordinary share capital, valued at approximately R1.3 billion.
DRDGold’s share price was R4.96 when the deal was proposed.
In addition, DRDGold and Sibanye-Stillwater entered into an option agreement in which it would be granted an option to increase its shareholding in DRDGold to 50.1 percent during the 24 months following implementation of the acquisition.
DRDGold said the deal, among others, would result in a 92 percent increase in gold reserves from 2.99 million ounces to 5.75 million ounces, provide cash flows in the short term, and had the potential to increase production, revenue and increase its reserve base.
The two companies said the deal was aimed at creating an industry-leading surface mining partnership.
– African News Agency