Sibanye and DRD partner on surface tailings deal

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Sibanye and DRD partner on surface tailings deal

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Published Date: 2017-11-23 | Source: Stephen Gunnion | Author: Stephen Gunnion

Sibanye and DRD partner on surface tailings deal

The deal will allow SibanyeStillwater to leverage off DRDGold's proven surface treatment capabilities

Sibanye-Stillwater says it's selling some of its gold surface processing assets and tailings storage facilities (TSFs) to DRDGold in return for a 38% stake in the gold miner. The gold and platinum group metals producer says the deal immediately crystallises R1.3 billion of value for the assets while retaining long-term exposure to the West Rand Tailings Treatment Project assets and growth in DRDGold. It also has the option to increases its equity stake in DRDGold to 50.1% within 24 months.

Sibanye says the deal excludes its Cooke uranium and gold assets as well as the Ezulwini gold and uranium plant. If it takes up its option to subscribe for the additional stake in DRDGold it will get the shares at a 10% discount to the 30-day volume weighted average traded price prior to the date of exercise.

Sibanye says the deal will allow it to leverage off DRDGold's proven surface treatment capabilities with the potential to capitalise on further growth opportunities locally and abroad.

Related article: Sibanye to shut its Cooke operations and retrench staff

Sibanye's shares gained 5.2% to R19 yesterday, while DRDGold's stock fell 2.2% to R4.85.



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