/ 22 November 2006

DRD to proceed with claim against JCI

DRDGold says it intends to proceed with its claim of more than R100-million against JCI after the former company of slain magnate Brett Kebble claimed it had settled the claim in a circular. "We can demonstrate that the conditions for a settlement agreement were never met and, as a result, no settlement was reached," said DRDGold chief executive Mark Wellesley-Wood.

DRDGold says it intends to proceed with its claim of more than R100-million against JCI after the former company of slain magnate Brett Kebble claimed it had settled the claim in a circular.

“We can demonstrate that the conditions for a settlement agreement were never met and, as a result, no settlement was reached,” said DRDGold chief executive Mark Wellesley-Wood in a statement.

The claim dates back to the purchase of the Rawas mine in Indonesia in 1999.

DRDGold issued over eight million shares worth R122,6-million to Rawas’s owner, Laverton Gold, a company that was 19,5% owned by and owed money to Consolidated African Mines. This company was renamed JCI.

DRDGold says that at the time of the deal, Rawas had no value, Laverton was insolvent and the DRDGold shares were allotted invalidly.

In a circular dated 14 September, JCI said that the claim was settled in August 2005 but DRDGold alleges the settlement was not finally concluded.

Just over a year ago, Investec came along with loan facility to keep the troubled JCI afloat.

“Brett Kebble approached me in April 2005, when he must have been under enormous personal pressure and JCI was facing insolvency and the prospect of an all-in settlement therefore made obvious sense,” said Wellesley-Wood.

“However it was clearly stated and accepted that any agreement would have to be concluded formally and that Brett Kebble/JCI would have to pay money under the deal, and meet other conditions before DRDGold would sign.” – I-Net Bridge