HARMONY ACQUIRES STAKE IN HIGH RIVER GOLD MINES LTD. Release Date: 11/11/2002 13:05:49 Code(s): HAR
HARMONY ACQUIRES STAKE IN HIGH RIVER GOLD MINES LTD.
Harmony Gold Mining Co. Ltd.
Johannesburg - 11 November 2002 - Harmony Gold Mining Company Limited
("Harmony") (NASDAQ: HGMCY) today announced that it has entered into a share
purchase agreement with Jipangu Inc. to acquire 17 074 861 common shares of High
River Gold Mines Limited ("High River") representing an approximate 21% interest
in the issued share capital of the company. The transaction is scheduled to
close on 22 November 2002. High River (TSE:HRG) is a Toronto based company with
gold interests in Russia, Canada and West Africa.
The price payable is US$0.85 per High River Gold share which represents an
approximate 16% discount on the weighted average share price for the 30 day
trading period prior to the execution of the agreement. The total purchase
consideration amounts to US$14.5 million (R145 million).
The principle assets of High River Gold are:
- a 53% fully diluted equity interest in OJSC Buryatzoloto - the 5th largest
gold producer in Russia, with two operating mines producing a total of
approximately 150 000 oz per year. As at the end of 2001 Buryatzoloto reported
reserves and resources of 1.4 million ounces and 5.3 million ounces
- an agreement to acquire a 100% interest in the Berezitovoye Project situated
in Siberia, Russia. The Berezitovoye deposit
is amenable to open-pit mining and under the Russian classification system
contains reserves of 1.38 million ounces gold and 6.49 million ounces silver.
- a 50% interest and joint operatorship of the New Britannia gold mine situated
in Manitoba, Canada - producing approximately 110 000 oz per year. As at the end
of 2001 New Britannia reported reserves and resources of 0.360 million ounces
and 0.760 million ounces respectively.
- an 80% interest in the Taparko gold project in Burkina Faso which has a gold
resource of approximately 1.0 million ounces.
The securities will be acquired by way of the Purchase Agreement. Harmony has
purchased the common shares for investment purposes only and not with the
purpose of influencing control or direction over High River Gold. Harmony may,
subject to market conditions, make additional investments in or dispositions of
securities of High River Gold in the future, including additional purchases of
common shares of High River Gold, both as investment conditions warrant. Harmony
currently has no holdings of High River Gold securities.
Commenting on the agreement Harmony Chief Executive, Mr Bernard Swanepoel
stated, "while this transaction, in terms of timing and pricing, is somewhat
opportunistic, Harmony holds High River Gold and its management team in high
regard. We have held various discussions with the company over the last few
years and look forward to further developing our relationship with High River
Gold and becoming supportive shareholders of the company".
Harmony in May of this year acquired a 32% stake in Highland Gold, a private
company with a package of prospective exploration assets and a gold producing
mine in Russia.
"We continue to be impressed by the highly prospective orebodies and good mining
infrastructure in Russia. Through our participation in both Highlands Gold and
High River Gold we will be in a position to identify further growth
opportunities available to the company in that country." concluded Bernard
Issued by Harmony Gold Mining Company Limited
For more details contact:
on +27(0)83 303 9922
on +27(0)82 807 3684
Tel +27 11 684 0146
Fax +27 11 684 0188 Mobile +27(0)83 380 6614
ISIN No.: ZAE000015228
Date: 11/11/2002 01:05:38 PM Supplied by www.sharenet.co.za
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