FREE GOLD ACQUISITION OF ST HELENA COMPLETED Release Date: 29/10/2002 14:25:46 Code(s): HAR
FREE GOLD ACQUISITION OF ST HELENA COMPLETED
Johannesburg, 29 October 2002 - The ARMgold/Harmony Freegold Joint Venture
Company (Pty) Ltd, Free Gold, today announced that all the remaining conditions
precedent to the acquisition of the St Helena mine from Gold Fields Limited,
have been fulfilled. Free Gold will take management control of the assets at
midnight, 29 October 2002.
Free Gold announced on 24 May 2002 that it had reached an agreement in principle
with Gold Fields Limited to acquire the assets of St Helena for a gross sale
consideration of R120 million. In addition, it was agreed that a 1% royalty on
revenue would be payable for a period of 48 months from the effective date.
For the 12 months ended June 2002, St Helena produced approximately 120 000
ounces at an average cash cost of US$260/oz, of which 60 000 ounces will be
attributable to each of Harmony and ARMgold.
"Finalising the sale of St Helena to Free Gold not only represents a further
step in the consolidation of the Free State goldfields, but extends the business
relationship between the companies," said Bernard Swanepoel, chief executive of
Harmony. "Our 50/50 Joint Venture with ARMgold now enters its second year and we
can truly claim that we are able to deliver shareholder value under the
conditions of the Mining Charter."
"The relationship between ARMgold and Harmony continues to develop and grow,"
said Patrice Motsepe, Executive Chairman of ARMgold. "I am convinced that
together we will be able to turn around yet another ailing gold mine - reducing
costs, improving efficiencies and securing employment in the longer term."
For more information please contact:
Ferdi Dippenaar Mangisi Gule
+27(0)82 807 3684 +27(0)82 805 3863
Date: 29/10/2002 02:24:00 PM Supplied by www.sharenet.co.za
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