Johannesburg, South Africa — MININGREVIEW.COM — 10 December 2008 – DRDGold Limited – Africa’s fourth-largest gold producer – has agreed to pay US$17 million (R177 million) to buy the remaining 35% of the Elsburg gold mining joint venture, and to secure total control of the low-cost project.
In a statement to the Stock Exchange News Service, DRDGold said the purchase of surface dump assets gave the company what it described as “significant strategic advantages,” because of rising output costs and safety concerns related to deep-level mining.
Implementation of the acquisition will result in the DRDGold group holding 100% of the Elsburg Joint Venture. The effective date of the acquisition was 8 December 2008, although the risk and title only passes to the group on completion of the acquisition.
DRDGold will now have outright management control over the Elsburg Joint Venture, which will expedite the advancement of the project and will allow for greater flexibility and optimisation of all dump retreatment operations conducted by the group.