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.
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)