(Updates with Blyvooruitzicht plans in third paragraph.)
June 23 (Bloomberg) -- DRDGold Ltd., a producer of the metal in South Africa, said its board has decided to suspend financial assistance to its 74 percent-owned unit, Blyvooruitzicht Gold Mining Co.
Blyvooruitzicht’s gold production is declining and costs are increasing, Johannesburg-based DRDGold said in a statement today. Blyvooruitzicht requires about 80 million rand ($11.7 million) in financial assistance through December 2011, the company said.
Blyvooruitzicht’s board has decided to begin “business rescue proceedings” in response, DRDGold said. These proceedings won’t interfere with talks to sell all or part of its holding in Blyvooruitzicht.
--Editors: John Viljoen, Dan Weeks
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