South African joint venture company Crown Gold Recoveries said on Monday it would buy marginal gold miner ERPM from German businessman Claas Daun for R120-million.
Crown Gold — a joint venture between mining investment group Khumo Bathong Holdings and gold producer Durban Roodepoort Deep — will buy the entire issued share capital and shareholders loan account of East Rand Proprietary Mines Ltd (ERPM).
Daun owns the entire shareholder loan account and 70% of ERPM. The remaining 30% is owned by Khumo Bathong.
The transaction is subject to a number of conditions, including a due diligence and approval from South Africa’s Competition Commission.
”This transaction represents consolidation of the East Rand and represents a growth opportunity for Crown,” said Khumo Bathong Chief Executive Paseka Ncholo.
Daun bought the century-old ultra-deep mine, one of South Africa’s oldest working mines, in 1999 and has since turned the loss-maker into a profitable operation.
Daun’s range of business interests include toweling maker Glodina. ”Mr Daun had indicated that gold mining is not core to his investment holdings,” a statement said.
ERPM produces 135 000 ounces of gold per year, and employs 4 800 people. – Reuters