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DRDGold to issue 45.5m new shares, fully acquire Ergo Mining

26th March 2015

By: Natalie Greve

Creamer Media Contributing Editor Online

  

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JOHANNESBURG (miningweekly.com) – Following the fulfilment of all suspensive conditions, DRDGold expects to issue 45.5-million new shares and acquire the remaining 26% of Ergo Mining Operations (EMO) it did not already own on April 10.

This followed a 2014 announcement in which the group stated its intention to enter into a share sale and subscription agreement with Khumo Gold – the company’s black economic-empowerment partner – to acquire Khumo’s 20% stake in EMO and all its claims against EMO in exchange for 35-million new ordinary shares in DRDGold. 

DRDGold simultaneously entered into an agreement with EMO’s broad-based empowerment shareholder, the DRDSA Empowerment Trust, to acquire its 6% interest in the issued share capital of EMO and all its claims against EMO in exchange for 10.5-million new DRDGold shares on the same terms as the Khumo acquisition.

Both acquisitons were approved by shareholders in June last year.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

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