DRDGOLD Limited announced today that the business rescue practitioner appointed to oversee business rescue proceedings in respect of its 74%-owned subsidiary, Blyvooruitzicht Gold Mining Company Limited, has terminated the business rescue proceedings with effect from 10 November 2011.
A DRDGOLD announcement on 23 June 2011 stated that Blyvoor’s board of directors had resolved to place Blyvoor under business rescue proceedings in terms of Chapter 6 of the Companies Act, No 71 of 2008. The business rescue practitioner was subsequently appointed.
In a SENS announcement today, DRDGOLD states that the business rescue practitioner’s termination of the process – given effect by his filing of a Notice of Termination of Business Rescue Proceedings with the Companies and Intellectual Property Commission yesterday – follows his concluding that there are no longer grounds to believe that Blyvoor is financially distressed in terms of Chapter 6 of the Act.
A condition precedent of the expression of interest by Village Main Reef Limited (Village) to acquire all of DRDGOLD’s interests in Blyvoor, announced on Tuesday this week (8 November 2011), is that the business rescue proceedings be terminated to that satisfaction of Village.
DRDGOLD’s SENS announcement today indicates that Village has been informed of the termination and that, while Village has still to consider the termination and inform DRDGOLD that it satisfactorily satisfies Village’s condition, the termination “represents an important step towards the potential implementation” of the Blyvoor transaction between DRDGOLD and Village.
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Many factors could cause the actual results, performance or achievements to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements included in this document, including, among others, adverse changes or uncertainties in general economic conditions in the markets we serve, a drop in the gold price, a sustained strengthening of the Rand against the Dollar, regulatory developments adverse to DRDGOLD or difficulties in maintaining necessary licenses or other governmental approvals, changes in DRDGOLD's competitive position, changes in business strategy, any major disruption in production at key facilities or adverse changes in foreign exchange rates and various other factors.
These risks include, without limitation, those described in the section entitled ‘Risk Factors’ included in our annual report for the fiscal year ended 30 June 2010, which we filed with the United States Securities and Exchange Commission on 29 October 2010 on Form 20-F. You should not place undue reliance on these forward-looking statements, which speak only as of the date thereof. We do not undertake any obligation to publicly update or revise these forward-looking statements to reflect events or circumstances after the date of this report or to the occurrence of unanticipated events.