Failing gold mine sold

摘要

DRD Gold and Aurora Empowerment System have announced that an agreement has been reached whereby Aurora will acquire from DRD Gold's operating subsidiary, DRD Gold SA, a 60 percent interest in its wholly-owned Blyvooruitzicht Gold Mining Company. The total value of the transaction is R376-million, R296-million of which is payable in cash by June 29 2010. In addition, in terms of the offer, Aurora undertakes to provide a facility of up to R80-million to Blyvoor in respect of working capital requirements. Under the arrangement, Blyvoor was to be able to drawdown R10-million on the facility at the end of December 2009, and going forward, it may draw up to R14-million at each month end thereafter until the end of May 2010. Aurora has also guaranteed DRD Gold, as from the start of the new year, a monthly profit share of R2,5-million or 25 percent of the net operating cash profit, whichever is higher, up to and including the end of the month preceding the expected transaction completion date of June 29 2010.