Gold Fields Limited - Press Release
Gold Fields Limited
Harmony Gold Mining Co. Ltd.
African Rainbow Minerals Gold Limited
Gold Fields To Sell St Helena to Free Gold
Johannesburg, 24 May 2002: Gold Fields Limited [JSE & NYSE-.GFI] is pleased
to announce that agreement in principle has been reached for its subsidiary,
St Helena Gold Mines Limited, to sell its St Helena Gold Mine to Free Gold
(a Joint Venture company between ARMgold and Harmony).
The gross sale consideration is R120 million, as well as a one per cent
royalty on revenue, the latter effective for a period of 48 months.
Chris Thompson, Chairman and Chief Executive Officer of Gold Fields said:
"This transaction makes imminent sense for all of the parties involved. It
progresses the consolidation of the Free State goldfields in the most
sensible manner possible, and further strengthens ARMgold and Harmony`s
empowerment vehicle, Free Gold."
Patrice Motsepe, Executive Chairman of ARMgold commented: "We are pleased
that the consolidation of the Free State goldfields continues with the
inclusion of St Helena. This operation which produces approximately 120,000
ounces per annum at a cash cost of US$234, will add 60,000 ounces to the
ARMgold production base."
"This transaction will allow the exploitation of previously sterilized ore
reserves between the three Free State mining companies, i.e. Harmony,
ARMgold and Free Gold. This is a unique situation where the synergies from
this acquisition will probably extend the life of these operations from its
current 18 months to approximately 4 years. In a continuous rising gold
price scenario, the extensive ore reserves at St Helena could allow for
mining to extend beyond that date," concluded Bernard Swanepoel, Chief
Executive of Harmony.
The agreement is subject to the fulfilment of conditions precedent,
including the completion of a final due diligence investigation and the
conclusion of a formal agreement of sale by 1 July 2002. Thereafter
implementation of the agreement will be subject to the obtaining of all
necessary regulatory consents and approvals by 31 October 2002.
For further details contact:
Gold Fields Limited
Harmony Gold Mining Company Limited
African Rainbow Minerals Limited
Date: 24/05/2002 10:45:00 AM Produced by the SENS Department