Photo by: Duane Daws
JOHANNESBURG (miningweekly.com) – Gold miner DRDGold on Friday announced that its 74%-owned subsidiary Ergo Mining Operations would sell the underground mining and prospecting rights held by East Rand Proprietary Mines (ERPM), as well as certain other assets on relating mining areas, to ERPM South Africa Holdings, a company nominated by Walcot Capital, for R220-million.
The sale assets comprised the ERPM extensions 1 and 2 mining and prospecting rights and assets, as well as the project’s high-density sludge processing plant, all material mining infrastructure and associated movable machinery, plant and equipment located within the mining area.
DRDGold explained that this proposal formed part of its process of disposing of assets that were no longer core to its long-term strategic objectives as a surface tailings retreatment company.
In terms of the agreement, the buyer had agree to take over the current rehabilitation obligations related to the sale assets, as well as any future rehabilitation obligations that could arise as a result of further operations and activities.
The transaction remained subject to certain conditions being fulfilled.