Harmony Gold Mine acquires a stake in Western Areas Limited Release Date: 10/03/2006 07:44:44 Code(s): HAR Harmony Gold Mine acquires a stake in Western Areas Limited
Harmony Gold Mining Company Limited
Registration number 1950/038232/06
Incorporated in the Republic of South Africa
ISIN: ZAE000015228
Trading Symbols
JSE Limited HAR
New York Stock Exchange, Inc. HMY
London Stock Exchange plc HRM
Euronext Paris HG
Euronext Brussels HMY
Berlin Stock Exchange HAM1
NASDAQ HMY
Harmony Gold Mine acquires a stake in Western Areas Limited
Johannesburg, 9 March 2006. Harmony Gold Mining Company Limited (NYSE: HMY JSE:
HAR) today announced that it has acquired a total of 44.99 million shares in
Western Areas Limited ("Western Areas" or "the Company") representing a 29.2%
stake in the Company. This was done by acquiring 37.37 million shares from
Allan Gray and buying a total of 7.62 million shares on the open market.
The acquisition of this significant shareholding in Western Areas provides
Harmony with a strategic exposure of 14.6% to South Deep gold mine, which is a
50:50 joint venture between Western Areas Limited and Barrick Gold Corporation.
The South Deep gold mine contains a reserve of 29.2 million ounces and a
resource of 67 million ounces, which represents one of the biggest high quality
gold ore bodies globally.
The average price of this stake was purchased at a 7.4% premium to the 30-day
volume weighted average price ("VWAP") of R41.07. The transaction will be
funded through utilizing cash of R985 million and a loan facility of R1.0
billion provided by Rand Merchant Bank. Harmony had cash and equivalents of
R2.914 billion as stated at the end of the December 2005 quarter. The only
outstanding short term debt is a bond repayment of R970 million, which is due in
June 2006.
"We see this as a strategic exposure to one of the best ore bodies in the world
and we look forward to working with the board of Western Areas on realizing this
assets" full potential. The similarities in ore bodies and mining methods
between the South Deep mine and our own Target mine and the lessons we have
learned at Target, gives us confidence in our valuation of Western Areas"
commented Bernard Swanepoel.
The pro forma financial effects of this transaction will be announced as soon as
possible.
Issued by Harmony Gold Mining Company Limited
10 March 2006
For more details contact:
Bernard Swanepoel
Chief Executive
on +27(0)83 303 9922
or
Philip Kotze
Executive, Investor Relations
on +27(0)83 453 0544
Investor Relations Officer
Vusi Magadana
Office: +27 11 684 0149
Mobile: +27(0)72 157 5986
vusi.magadana@harmony.co.za
Debt underwriter
Rand Merchant Bank
Merchant Bank
Rand Merchant Bank Corporate Finance
Transactional sponsor
Rand Merchant Bank Corporate Finance
Sponsor
Merrill Lynch South Africa (Pty) Limited
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.
Date: 10/03/2006 07:44:48 AM Supplied by www.sharenet.co.za
Produced by the JSE SENS Department
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