South African mining company Sibanye-Stillwater Ltd. (SBGL) said Wednesday that it has agreed to exchange a number of gold-processing assets and tailings storage facilities for a 38% stake in DRDGOLD Ltd. (DRD), in a deal valued at 1.3 billion South African rand ($92.6 million).
Sibanye will have an option to increase its interest in DRDGOLD to 50.1% within 24 months, following the completion of the deal, the company said.
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The assets Sibanye is transferring have probable gold mineral reserves of 3.82 million ounces, the miner said. Sibanye added that it will retain long-term exposure to the West Rand tailings retreatment project in South Africa under DRDGOLD's control.
DRDGOLD intends to develop the West Rand project, culminating in a central processing plant and a regional tailings-storage facility, Sibanye added.
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(END) Dow Jones Newswires
November 22, 2017 01:44 ET (06:44 GMT)