DRDGOLD to raise R111 million for new flotation grind plant

DRDGOLD announced that the Johannesburg Stock Exchange has granted it a listing in terms ofiron ore mining equipment used its Domestic Medium-Term Note Programme.

The programme provides for the issue of loan notes totalling R111 million.

DRDGOLD CEO Niël Pretorius says the funds raised will be directed towards the previously announced construction of a new R250 million flotation and fine grind circuit at the Brakpan plant of the company’s Ergo surface retreatment operation.

The balance of the capital cost of this circuit will be funded from cash generated by the operation.

Construction of the flotation and fine grind circuit – which is targeted to increase Ergo’s gold production by between 16 and 20% – is already under way. Commissioning is expected to begin during February 2013 with full production attained by the beginning of July 2013.