To: pater tenebrarum who wrote (41266 ) 11/28/2000 9:09:52 AM From: Box-By-The-Riviera™ Read Replies (1) | Respond to of 436258 JOHANNESBURG (Dow Jones)--South African junior gold miner Durban Roodepoort
Deep (DROOY) has put in a bid in excess of 1.0 billion rand ($1=ZAR7.7465) for
AngloGold Ltd.'s (AU) Elandsrand and Deelkraal mines, a company executive told
Dow Jones Newswires on Tuesday.
The bid rivals the one made Monday by Harmony Gold Mining (HGMCY) of between
ZAR600 million and ZAR900 million, and includes a bid for AngloGold's Savuka
mine.
The deadline for all bids is Thursday, with the new owners likely to take
control of the two mining operations by the end of the year. Both these mines
lie in the West Witswatersrand area, southwest of Johannesburg.
"The financing of the deal would be a composite approach," said Durban Deep
Chairman Mark Wellesley-Wood.
"We would use the forward gold curve and securitization where ever possible,
and as we're a neighboring mine there would be cost savings we can include in
the deal."
The deal, including Anglogold's Savuka mine, would increase production by
700,000 ounces, declining to 600,000 over five years, said Wellesley-Wood.
Durban Deep has annual production of around 1.0 million ounces, with its
Doornfontein and Blyvoor sections lying adjacent to AngloGold's Savuka mine.
Durban Deep's bid has raised the stakes for AngloGold's ailing West Wits
operations.
In a statement Monday, Harmony said it was in talks with AngloGold, the
world's biggest gold miner, to acquire its assets in the Free State and West
Witswatersrand regions.
The deal would be the first acquisition since Harmony acquired junior miner
Randfontein Estates Ltd. in January.
Harmony is the country's third biggest gold miner with annual production in
excess of 2 million ounces, with the acquisition of the two mines seen adding
around half a million ounces to Harmony's production.
At around 1030 GMT, Harmony was trading up 60 cents, or 2.1%, at ZAR29.60,
AngloGold had gained ZAR4.00, or 2.0%, to ZAR200.00, while Durban Roodepoort
Deep was trading unchanged at ZAR4.40 on the JSE Securities Exchange South
Africa.