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UPDATE 1-Durban Deep allows Investec to buy new shares

December 17, 2003 06:51:05 (ET)


JOHANNESBURG, Dec 17 (Reuters) - South African gold miner Durban Roodepoort Deep (DRD) ((DURJ.J)) said on Wednesday it had granted financial group Investec ((INLJ.J))((INPJ.J)) an option to buy 10.2 million new DRD shares.

If the option is exercised before its expiry in March 2004, DRD would use the proceeds for general corporate funding purposes, the firm said in a statement.

The shares would be priced in dollars at 95.5 percent of the simple average of the daily volume-weighted price of DRD American Depository Receipts (DROOY,Trade) for the 10 days prior to the exercise date.

In September, DRD raised a total of 483 million rand ($75.44 million at current exchange rates) by issuing new shares to the Investec Group in two placements of nine million shares and 18 million shares.

Some of those proceeds were used by DRD to buy a 20 percent stake in the Porgera gold mine in Papua New Guinea.

DRD shares were unchanged at 16 rand at 1135 GMT.

© Copyright 2001 Reuters.

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