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Swoop for DRDGOLD's SA mines
David McKay
Posted: Mon, 28 Mar 2005
[miningmx.com] -- SIMMERS & Jack Mines, a company controlled by the Kebbles, a Johannesburg based mining family, is preparing to buy the South African assets of DRDGOLD.
Letters of intent had been delivered to Mark Wellesley-Wood, CEO of DRDGOLD, and a liquidator that was last week appointed to preside over the sale or closure of Buffelsfontein and Hartebeesfontein, assets in South Africa’s North West province, formerly owned by DRDGOLD.
“I believe we have a proposal that will prevent permanent closure and save a substantial number of jobs on which the local communities depend for their existence," said Roger Kebble, chairman of Simmers & Jack Mines. Roger's son, Brett Kebble, is a well known mining industry financier and operator.
Simmers & Jack recently announced a refinancing package in order to inject capital into old mining shafts in the Sabie region of South
Africa. The company, which has been coasting for years, is listed on the JSE Securities Exchange with Randgold & Exploration (RG&E) as one of its major shareholders.
Kebble said it was no secret DRDGOLD’s financial woes had taken its toll on the upkeep and maintenance of the North West Operations. "I have been reliably informed that were we to succeed in our bid, we would have to commit to extensive structural changes and costs in order to ensure a productive working environment.
“Most of the monies raised over the past few years by DRD have been spent on assets outside of the country which has left the South African assets undercapitalized." Kebble claimed to have the operational expertise to save the North West mines.
Ilja Graulich told Business Times, a Sunday newspaper, that R280m had been “poured down” the North West mines. Graulich said, however, that Simmers & Jack’s proposal would be put to the DRDGOLD board.
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