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DRDGOLD LIMITED - Acquisition of WRTRP becomes wholly unconditional

Release Date: 01/08/2018 07:30
Code(s): DRD     PDF:  
Wrap Text
Acquisition of WRTRP becomes wholly unconditional

(Incorporated in the Republic of South Africa)
(Registration number 1895/000926/06)
JSE share code: DRD
ISIN: ZAE000058723
NYSE trading symbol: DRD
(“DRDGOLD” or the “Company”)


Unless otherwise indicated, capitalised words and terms contained in this announcement shall bear
the same meanings ascribed thereto in the circular to DRDGOLD shareholders, dated Monday,
26 February 2018 (“Circular”).

Shareholders are referred to the Circular, in terms of which Shareholders were advised of, inter alia:

-   the proposed acquisition by DRDGOLD of the WRTRP Assets, by way of the acquisition of a
    100% shareholding in WRTRP, from Sibanye-Stillwater (“Acquisition”); and

-   the granting of the Option to Sibanye-Stillwater to subscribe for additional DRDGOLD Shares.

The Company is pleased to advise that all of the Acquisition Conditions have been fulfilled and / or
waived and the Acquisition has become wholly unconditional. In the circumstances, the Acquisition
has been implemented with effect from Tuesday, 31 July 2018 (“Implementation Date”).

Shareholders are advised that Sibanye-Stillwater now holds 38.05% in DRDGOLD and that pursuant
to the Transaction, Sibanye-Stillwater is also entitled to exercise the Option and subscribe for such
number of additional DRDGOLD Shares for cash at a 10% discount to the 30 day volume weighted
average traded price of a DRDGOLD Share on the day prior to the date of exercise of the Option, so
as to attain up to a 50.1% shareholding in DRDGOLD. The Option must be exercised in whole any
time during the period commencing on the Implementation Date and expiring 24 months thereafter.

DRDGOLD’s CEO, Niël Pretorius, commented: “WRTRP is key to our growth strategy, increasing our
reserves by 90%. Conclusion of the Acquisition means that the way is clear for DRDGOLD to
expedite Phase 1 of its phased plan for the development of WRTRP, to be known going forward as
Far West Gold Recoveries, a wholly-owned subsidiary of DRDGOLD.

Phase 1 involves the upgrading of the Driefontein 2 plant to process tailings from the Driefontein 5
dump at a rate of between 400 000 and 600 000tpm and depositing the residue on the Driefontein 4
tailings dam.

We have secured a R300 million revolving credit facility from a South African Financial Institution for
Phase 1, confirmed orders for most of the long lead items, and expect to be in production in the first
quarter of calendar year 2019.”

1 August 2018

One Capital

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