DRDGOLD has reached agreement with its black economic empowerment (BEE) partners, Khumo Gold SPV and the DRDSA Empowerment Trust, which will see an increased interest for the BEE partners to 8.1% and 2.4% in DRDGOLD respectively, a transaction that is worth R191 million in total.
The JSE- and NYSE-listed gold mining company said in a statement that this is to substitute the BEE structure that has been in place since 2005, where Khumo holds 20% and DRDSA Trust holds 6% shares at an operating level through the company’s subsidiary, Ergo Mining Operations (EMO).
In terms of the agreement announced today, Khumo and the DRDSA Trust will exchange their interest in EMO for 35 000 000 and 10 500 000 new DRDGOLD ordinary shares respectively. The total value of the transaction based on the aforementioned ratio and at the share value agreed for the exchange is R191 100 000.
DRDGOLD says, in support of the new arrangement, that it ensures regulatory compliance in respect of existing mining rights. It also provides Khumo and the DRDSA Trust with the ability to realise the value of their interests in EMO on the Johannesburg Stock Exchange, which is a liquid market and most likely to provide fair value, thereby furthering the objectives of BEE in South Africa. The transaction has the added benefit of introducing operational and capital management flexibility for DRDGOLD over its core business.
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