HomeGoldDRDGold buys further 15% of Elsburg

DRDGold buys further 15% of Elsburg

John Sayers,
Johannesburg, South Africa — MININGREVIEW.COM — 07 October 2008 – DRDGold Limited has announced that its 74%-held subsidiary, DRDGold South African Operations (Pty) Limited, has acquired a further 15% of the Elsburg Gold Mining Joint Venture for R100 million from Mintails SA (Pty) Limited, a wholly-owned subsidiary of Mintails Limited.

Initially a 50:50 joint venture between DRDGOLD SA and Mintails SA, the Elsburg JV involves gold recovery and processing from the Elsburg tailings complex on the East Rand.

It forms part of the 50:50 Ergo Joint Venture between the parties, which was established to process some 1.7 billion tonnes of surface gold-, uranium- and sulphur-bearing tailings on the central and East Rand.

DRDGOLD SA will now hold a 65% interest in the Elsburg JV and Mintails SA, 35%.

A statement released here said that in addition, Mintails had granted DRDGold SA a conditional option – exercisable between 1 and 15 January 2009 – to acquire a further 11.4% interest in Elsburg for R75.9 million.

DRDGold CEO John Sayers commented: “This acquisition facilitates the advancement of both the Elsburg and Ergo JVs. Also, it is consistent with DRDGold’s stated intention of focusing on its South African gold operations, and in particular its surface dump retreatment operations.”