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AFLEASE - AFLEASE TO ACQUIRE RIGHTS TO HARMONY"S URANIUM

Release Date: 03/02/2005 10:04
Code(s): AFL
Wrap Text

AFLEASE - AFLEASE TO ACQUIRE RIGHTS TO HARMONY"S URANIUM Aflease Gold and Uranium Resources Limited (Formerly The Afrikander Lease Limited) (Incorporated in the Republic of South Africa) AFL (JSE) AFKDY (NASDAQ) (Registration number 1921/006955/06) ISIN: ZAE000061461 Share Code : AFL ("Aflease" or "the company") Media Release Aflease to acquire rights to Harmony"s uranium Johannesburg February 3, 2005: Aflease Gold and Uranium Resources Limited ("Aflease") today announced that it had entered into an agreement in principle with Harmony Gold Mining Company Limited ("Harmony") whereby Aflease would acquire the right to mine, process and market all of Harmony"s uranium in South Africa. This resource is estimated to consist of 155 million lbs U3O8 of high grade dump and tailings material, which could start producing uranium in about 2 years. A further 145 million lbs U3O8 low grade tailings has also been delineated as a future target. The Harmony uranium deposits are situated predominately to the west of Johannesburg and in the Free State province. These rights have been acquired for R200 million and payment to Harmony would be by way of Aflease scrip. In addition Harmony will receive a royalty as and when these resources are brought to account. Neal Froneman, chief executive officer of Aflease, said: "By acquiring Harmony"s uranium interests, Aflease will now have a uranium resource of more than 600 million lbs." "This firmly places Aflease among the top 10 international uranium companies." "We are very pleased to be part of a long term relationship like this. It will create value for both Aflease and Harmony." "There is huge window of opportunity for producers that can bring uranium production on stream within the next five years." "We, in Aflease, plan to seize that opportunity with both hands." The transaction is subject to the drawing up of a detailed agreement, normal regulatory approvals, various levels of due diligence, and the approval of the boards of both companies. Shareholders will be kept fully informed of developments. For further information please contact: Neal Froneman + 27114823605, or mobile: + 27836280226 Date: 03/02/2005 10:04:51 AM Supplied by www.sharenet.co.za Produced by the JSE SENS Department

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