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Acquisition by Harmony of 11,5% of the issued share capital of Avgold Limited

Release Date: 15/07/2003 17:44:01      Code(s): HAR
Acquisition by Harmony of 11,5% of the issued share capital of Avgold Limited   
Harmony Gold Mining Company Limited                                             
(Incorporated in the Republic of South Africa)                                  
(Registration number 1950/038232/06)                                            
Share code: HAR   ISIN: ZAE000015228                                            
("Harmony")                                                                     
Acquisition by Harmony of 11,5% of the issued share capital of Avgold Limited   
Harmony is pleased to announce it has agreed to acquire 77 540 830 ordinary     
shares (11,5%) in Avgold Limited ("Avgold") from Anglo South Africa Capital     
(Proprietary) Limited ("Anglo South Africa") (the "acquisition") in exchange for
the issue to Anglo South Africa of a renounceable letter of allocation ("RLA")  
representing the right to the allotment and issue of 6 960 964 new ordinary     
shares in Harmony, comprising 3.8% of the issued share capital of Harmony.      
On 2 May Harmony and African Rainbow Minerals Gold Limited announced that they  
had jointly acquired a 34,5% stake in Anglovaal Mining Limited which has a 42,5%
stake in Avgold.                                                                
Avgold operates the Target Mine in the Free State which at full production is   
expected to produce 350 000 gold ounces per annum, at a cash cost below US$180  
per ounce. An extensive exploration programme in an area known as Target North, 
which has a resource base of approximately 80 million ounces is currently       
underway.                                                                       
In addition, if at any time within a period of 12 months reckoned from the      
completion date of the acquisition, Harmony makes an offer to the shareholders  
of Avgold for a consideration which is higher than that paid to Anglo South     
Africa, Harmony shall make an additional payment to Anglo South Africa          
equivalent to the difference between the consideration paid and such higher     
consideration, provided that the aggregate amount paid to Anglo pursuant to such
acquisition and the additional payment shall not exceed an amount which would   
result in a Category 1 acquisition for Harmony.                                 
The acquisition, which is subject to certain conditions, including the          
unconditional approval of the board of Anglo American plc, is expected to       
complete on 21 July 2003.                                                       
15 July 2003                                                                    
Financial adviser and sponsor to Harmony                                        
JPMorgan                                                                        
Attorneys to Harmony                                                            
Cliffe Dekker                                                                   
Date: 15/07/2003 05:44:04 PM Supplied by www.sharenet.co.za                     
Produced by the JSE SENS Department                                             
                                                                                
                                                                                
                                                                                



                                        
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