{"id":654047,"date":"2018-03-28T10:58:54","date_gmt":"2018-03-28T10:58:54","guid":{"rendered":"http:\/\/juniorminingnews.com\/?p=654047"},"modified":"2018-03-28T10:58:54","modified_gmt":"2018-03-28T10:58:54","slug":"drdgold-okays-sibanye-stillwater-110-million-assets-exchange-deal-2","status":"publish","type":"post","link":"https:\/\/juniorminingnews.com\/?p=654047","title":{"rendered":"DRDGold okays Sibanye-Stillwater $110 million-assets exchange deal"},"content":{"rendered":"

By analyst<\/a><\/span> <\/p>\n

By Cecilia Jamasmie<\/a><\/span> <\/p>\n

South African DRDGold approved Wednesday<\/a> a deal proposed by Sibanye-Stillwater (JSE:SGL) (NYSE:SBGL) to exchange some its assets for a 38% stake in the mid-tier gold miner.<\/p>\n

The transaction, valued at R1.3 billion (roughly $110 million at today’s rates), also gives Sibanye the option to buy another 12.1% of DRDGold shares \u2014 enough to give it control of the firm.<\/p>\n

The assets the precious metals producer is transferring have probable gold mineral reserves of 3.82 million ounces, Sibanye-Stillwater said<\/a>. And while it plans to retain long-term exposure to the West Rand tailings retreatment project (WRTRP) in South Africa, it’s leaving the development of such endeavour to DRDGold.<\/p>\n

Deal grants Sibanye-Stillwater a 38% stake in DRDGold, which receives some assets that boost its gold reserves by 91% to 5.7 million ounces.<\/p>\n

WRTRP is a large-scale, long-life surface tailings retreatment that will retreat material with a 35% higher gold content than the material treated by DRDGold at its flagship Ergo metallurgical plant on the East Rand.<\/p>\n

The transaction virtually doubles DRDGold’s gold reserves, giving it immediate access to facilities that can generate cash for it in a matter of months. It also cuts overhead unit costs through increased production and puts an end to DRDGold’s single asset operating risk.<\/p>\n

For the company, tailings around Sibanye’s Driefontein and Kloof mines near Carletonville, are relatively rich in gold compared with what it has been mining so far to the east.<\/p>\n

The first phase to unlock the tailings will focus on processing 28 million tonnes of tailings at Driefontein dump 5, which has a grade of 0.469g of gold a tonne and contains 421,000 ounces of gold, DRDGold has said.<\/p>\n

It will be funded by debt and the company has indicated it has an \u201cin principle commitment\u201d from a financial institution for the facility to upgrade one of the plants to process 500,000 tonnes a month and a network of pipelines and equipment.<\/p>\n

DRDGold has established itself as one of South Africa’s top gold tailings retreatment operator, using its Ergo plant to treat old dumps around the city.<\/p>\n

Sibanye-Stillwater is South Africa’s largest gold producer and the world’s third largest producer of palladium and platinum.<\/p>\n

The deal, which is expected to close in the second quarter of the year, remains subject to, and conditional on environmental permits for DRDGold to operate the selected Sibanye-Stillwater assets.<\/p>\n

The post DRDGold okays Sibanye-Stillwater $110 million-assets exchange deal<\/a> appeared first on MINING.com<\/a>.<\/p>\n

\u2026read more<\/a> <\/p>\n

Source:: Infomine<\/a><\/p>\n

The post DRDGold okays Sibanye-Stillwater $110 million-assets exchange deal<\/a><\/a> appeared first on Junior Mining Analyst<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

By analyst By Cecilia Jamasmie South African DRDGold approved Wednesday a deal proposed by Sibanye-Stillwater (JSE:SGL) (NYSE:SBGL) to exchange some its assets for a 38% stake in the mid-tier gold miner. The transaction, valued at R1.3 billion (roughly $110 million at today’s rates), also gives Sibanye the option to buy another 12.1% of DRDGold shares […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"footnotes":""},"categories":[4],"tags":[],"_links":{"self":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/654047"}],"collection":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=654047"}],"version-history":[{"count":0,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/654047\/revisions"}],"wp:attachment":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=654047"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=654047"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=654047"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}