Sibanye-Stillwater said on Thursday it had received approval from South African competition authorities for its R1.3 billion transaction with DRDGold in which Sibanye will vend surface gold resources into a partnership in return for a stake in the gold retreatment company.
Late last year, Sibanye-Stillwater agreed to vend selected gold surface processing assets and tailings storage facilities at its West Rand Tailings Retreatment Project, Gauteng, for a 38 percent stake in DRDGold.
The deal will see Sibanye exchange selected assets for about 265 million newly issued DRDGold shares and be granted a call option to subscribe for the option shares so as to attain a 50.1 percent shareholding in DRDGold. The deal is seen as a bid to create an industry-leading surface mining partnership.
“Should Sibanye-Stillwater elect to exercise the call option within a period of 24 months from the approval date … Sibanye-Stillwater shall inform the Commission of its decision within 20 business days of exercising the call option,” it said in a statement.
The implementation of the transaction remains subject to the approval and passing of the required resolutions by DRDGold shareholders. It is anticipated that the outstanding conditions will be fulfilled in the second quarter of 2018.
– African News Agency (ANA)