Harmony disposes of its 50% stake in the Burnside JV Release Date: 23/09/2005 12:10:12 Code(s): HAR
Harmony disposes of its 50% stake in the Burnside JV
HARMONY GOLD MINING COMPANY LIMITED
JSE : HAR
NYSE : HMY
ISIN No.: ZAE000015228
HARMONY DISPOSES OF ITS 50% STAKE IN THE BURNSIDE JV
Johannesburg, 23 September 2005 - Harmony Gold Mining Company Limited (NYSE: HMY
JSE: HAR) today announced that they had reached agreement with Northern Gold NL
on the divestment of its 50% stake in the Burnside Joint Venture for a
consideration of A$24 million or R117 million.
In terms of the agreement Northern Gold will purchase Harmony"s sole purpose
subsidiary which holds Harmony"s interest in the Burnside JV and the management
The purchase consideration of A$24 million (plus replacement of a A$1 million
performance bond) is payable in tranches comprising:
* A non-refundable deposit of A$0.25 million.
* A cash payment of A$4.0 million and an issue of A$5.0 million of shares (20
million Northern Gold shares) on completion (within six months) and the
replacement of a A$1.0 million performance bond.
* A cash payment of A$5.0 million and the issue of A$4.4 million shares (at an
issue price equal to the higher of A$0.25/share and the prevailing 30 day volume
weighted average market price) six months after completion, and
* A cash payment of A$5.35 million payable 18 months after the completion date.
The transaction is subject to normal regulatory approvals that accompany such
Harmony Chief Executive Bernard Swanepoel commented: "Having a single company
controlling leveraged deposits such as those within the JV would have been
difficult to manage by two companies with contrasting strategies. Harmony will
however still get exposure to the assets through its shareholding in the
controlling company. "
Unless the context otherwise requires, the definitions contained in the offer
document or the registration statement sent to Gold Fields shareholders have the
same meaning in this announcement.
The directors of Harmony accept responsibility for the information contained in
this announcement. To the best of the knowledge and belief of the directors of
Harmony (who have taken all reasonable care to ensure that such is the case),
the information contained in this announcement is in accordance with the facts
and does not omit anything likely to affect the import of such information.
Statements in this announcement include "forward-looking statements" that
express or imply expectations of future events or results. Forward-looking
statements are statements that are not historical facts. These statements
include financial projections and estimates and their underlying assumptions,
statements regarding plans, objectives and expectations with respect to future
operations, products and services, and statements regarding future performance.
Forward-looking statements are generally identified by the words "expect,"
"anticipates," "believes," "intends," "estimates" and similar expressions. All
forward-looking statements involve a number of risks, uncertainties and other
factors, and Harmony cannot give assurances that such statements will prove to
be correct. Although Harmony"s management believes that the expectations
reflected in such forward-looking statements are reasonable, investors are
cautioned that forward-looking information and statements are subject to various
risks and uncertainties, many of which are difficult to predict and generally
beyond the control of Harmony, that could cause actual results and developments
to differ materially from those expressed in, or implied or projected by, the
forward-looking information and statements. These risks and uncertainties
include those discussed or identified in the public filings with the SEC made by
Harmony. Harmony does not undertake any obligation to update any forward-
looking information or statements.
Issued by Harmony Gold Mining Company Limited
23 September 2005
For more details contact:
on +27(0)82 807 3684
Investor Relations Officer
Office: +27 11 684 - 0149
Mobile: +27(0)72 157 5986
Corporate Office: Suite No.1
Private Bag X1
South Africa 2076
T +27 (11) 684 0140
F +27 (11) 684 0188
Date: 23/09/2005 12:10:18 PM Supplied by www.sharenet.co.za
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