Mine workers employed at Sibanye Gold’s Masimthembe shaft operate a drill in Westonaria, South Africa, April 3, 2017. REUTERS/Mike Hutchings
JOHANNESBURG (Reuters) – South African gold producer Sibanye-Stillwater has exercised an option to acquire an additional 12% interest in DRDGOLD, bringing its total stake to 50.1%, the smaller miner announced on Friday.
The transaction marks the single largest investment ever made by an individual shareholder in DRDGOLD, its chief executive Niel Pretorius said in a statement.
DRDGOLD acquired the gold assets of Sibanye-Stillwater’s West Rand tailings retreatment project in July 2018 in exchange for a 38.1% stake in the smaller firm and a 24-month option to acquire an additional 12%.
Pretorius said the proceeds of Sibanye’s stake purchase would go “a long way” to funding the early-stage development of phase 2 of the tailings retreatment project.
Reporting by Helen Reid; Editing by Jan Harvey