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DRD - DRDGold Limited - Blyvoor Accepts Offer of Assistance from Anglogold

Release Date: 14/07/2011 16:00
Code(s): DRD
Wrap Text

DRD - DRDGold Limited - Blyvoor Accepts Offer of Assistance from Anglogold Ashanti DRDGOLD LIMITED (Incorporated in the Republic of South Africa) (Registration number 1895/000926/06) JSE share code: DRD ISIN: ZAE000058723 Issuer code: DUSM Nasdaq trading symbol: DROOY ("DRDGOLD" or "the Company") BLYVOOR ACCEPTS OFFER OF ASSISTANCE FROM ANGLOGOLD ASHANTI DRDGOLD shareholders ("Shareholders") are advised that the Company`s distressed operating subsidiary, Blyvooruitzicht Gold Mining Company Limited ("Blyvoor") has accepted an offer of assistance from AngloGold Ashanti Limited ("AngloGold Ashanti"). This offer is subject to the finalisation of a definitive agreement between Blyvoor and AngloGold Ashanti This development follows DRDGOLD`s announcement published on SENS on 23 June 2011 which included details that, in response to DRDGOLD`s suspension of any further financial assistance to Blyvoor, the board of directors of Blyvoor ("Blyvoor Board") had decided to begin business rescue proceedings for Blyvoor in terms of Chapter 6 of the new Companies Act, No. 71 of 2008, as amended ("Companies Act"). The offer of assistance from AngloGold Ashanti involves the sale to Blyvoor of some 390 000 square metres of its neighbouring Savuka mining area for a consideration of R35 million. This area is not within AngloGold`s current mine planning. Pending the necessary regulatory approvals and subject to the finalisation of a binding agreement, Blyvoor will mine the area under contract. "We are grateful to AngloGold Ashanti for this show of good neighbourliness and pragmatism," said Niel Pretorius, CEO of DRDGOLD. "We believe that there may be potential for Blyvoor to generate significant free cashflow by mining the Savuka ground, which will help to restore its `going concern` status, an important consideration for prospective lenders and suitors." In terms of the provisions of Chapter 6 of the Companies Act, the Blyvoor Board has appointed Peter van den Steen as the Business Rescue Practitioner. Working with Blyvoor`s management team, Van den Steen has 25 working days - until 12 August - to produce a rescue plan for Blyvoor. The plan must then be presented to and voted on by Blyvoor`s creditors. "At this point, we are very confident the rescue process can deliver a workable rescue plan," Pretorius said. "A `no` vote to such a plan would mean Blyvoor`s liquidation; an outcome with far-reaching negative consequences for all stakeholders." Van den Steen, an MBA graduate and registered business rescue practitioner, has extensive experience in successful business rescue processes, both in South Africa and internationally. Roodepoort 14 July 2011 Sponsor One Capital Date: 14/07/2011 16:00:02 Supplied by www.sharenet.co.za Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.

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