Go Back Email this Link to a friend

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 
entity thereof.                                                                 
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.     
Forward-looking Statements                                                      
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:                                                       
Ferdi Dippenaar                                                                 
Marketing Director                                                              
on +27(0)82 807 3684                                                            
Investor Relations Officer                                                      
Vusi Magadana                                                                   
Office: +27 11 684 - 0149                                                       
Mobile: +27(0)72 157 5986                                                       
Corporate Office: Suite No.1                                                    
                  Private Bag X1                                                
                  Melrose Arch                                                  
                  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                     
Produced by the JSE SENS Department                                             

Email this JSE Sens Item to a Friend.

Send e-mail to
© 2021 SHARENET (PTY) Ltd, Cape Town, South Africa
Home     Terms & conditions    Privacy Policy
    Security Notice    Contact Details
Market Statistics are calculated by Sharenet and are therefore not the official JSE Market Statistics. The calculation/derivation may include underlying JSE data.