COMPANIES
DRDGold to raise R180m
Posted Wed, 06 Apr 2005
DRDGold Limited said on Tuesday it would raise more than R180-million through new company shares following an agreement with
Baker Steel Capital Managers (BSCM).
"Baker Steel's support serves to consolidate that of the broader
investing community as whole for the radical surgery we have
performed recently to save our viable South African operations,"
DRDGold chief executive Mark Wellesley-Wood said in a statement.
It read that the capital raising would be in two equal tranches:
a claw-back offer to shareholders underwritten by BSCM, and
a specific issue of shares to clients of BSCM for cash.
"This capital raising is ideally timed to take us swiftly
through a painful adjustment to the strong rand, into a new phase
of growth and development," said Wellesley-Wood.
He added that monies raised would address the "going concern"
issue raised in the company's interim report by its auditors, KPMG.
Last month the High Court of
South Africa granted a provisional
liquidation order for DRD Gold's Buffelsfontein Gold Mines Limited,
which is commonly known as the North West Operations.
The mine suffered losses exceeding R270-million in the six
months to December 31.
Shortly before the liquidation order, an earthquake had struck,
causing DRDGold to suspend operations to evacuate workers from
underground. Two were killed.
Sapa
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