Refocused gold producer DRDGold has hopes to sell its 78,5% stake in Australasian subsidiary Emperor Mines “as soon as possible”, and will embark on a road show to this end after it has released a prospectus for the sale, a director said on Tuesday.
It would then be solely centred on South Africa, after a more-than-three-year stint in Papua New Guinea.
This came after an announcement that ASX-listed Emperor planned to merge with Canadian gold junior Intrepid Mines, on condition that DRDGold first exited the troubled company.
Emperor was already trying to sell its last remaining mine, Tolukuma, along with its associated exploration tenements, which would leave it with an Indonesian exploration joint venture as its sole minerals asset.
DRDGold acting CFO Kobus Dissel said in a telephone interview that the firm had appointed Dutch commercial banker ABN Amro as brokers to place its Emperor shares.
Meanwhile, on September 10, Emperor announced that it planned to sell the Tolukuma mine.
Dissel told Mining Weekly Online that Emperor would still progress with the sale, and that DRDGold could sell the ASX-listed company with or without Tolukuma.
“It depends what comes first,” he stated.
DRDGold shares were trading 2,68% up for the day by 14:36 on Tuesday, at R5,73 a share.
The amalgamation would take place by means of a scheme of arrangement, with Emperor shareholders getting one Intrepid share for each 4,25 securities they held in the Australia-based company.
The proposed merger was subject to DRDGold first being able to successfully realise its investment in Emperor, the merging companies said in a note posted to the ASX.
The deal, planned to reach conclusion in January 2008, was also subject to conditions including both firms’ shareholders approving it, the acquisition and cancellation of all Emperor share options, and both companies being happy with their due diligences.
Emperor would also have to have surplus net cash of at least A$54-million immediately before a second court hearing to approve the scheme.