JOHANNESBURG (miningweekly.com) – JSE-listed DRDGold will amend its black economic empowerment (BEE) deal with shareholder Khumo Gold to ensure that the latter does not breach the original agreement’s lock-in period.
Khumo, which is seeking shareholder approval to enter into hedging arrangements to secure the value of the DRDGold shares, is restricted from disposing of or encumbering the shares until April 10, 2018.
However, to enable the company to enter into the hedging arrangement, Khumo is required to enter into a securities lending arrangement with a financial institution, which would result in a technical breach of the lock-in.
“It was always our intention that Khumo would, during the lock-in period be capable of concluding such an arrangement, provided that it does not encroach upon the BEE status of our existing mining and prospecting rights,” DRDGold said in a statement.
After the hedging arrangement has been concluded, Khumo will continue to hold a direct interest in and have voting rights attributable to 22-million DRDGold shares; however, its beneficial interest will continue to extend to all 35-million of its original DRDGold shares until the expiry of the lock-in period.
The Department of Mineral Resources has approved the amendment.