HAR - Harmony - Buyback of Hidden Valley Royalty agreement Release Date: 28/03/2007 09:30:00 Code(s): HAR HAR - Harmony - Buyback of Hidden Valley Royalty agreement
HARMONY GOLD MINING COMPANY LIMITED
Incorporated in 1950
Registration number 1950/038232/06
Share code: HAR
Issuer Code: HAPS
ISIN: ZAE000015228
BUYBACK OF HIDDEN VALLEY ROYALTY AGREEMENT
Harmony Gold Mining Company Limited (the "Company") today announced that it has
concluded negotiations with Rio Tinto Limited ("Rio Tinto") in terms of which
the parties have agreed that Harmony purchase the Rio Tinto rights under the
royalty agreement entered into prior to the acquisition by Harmony of the Hidden
Valley and Kerimenge deposits in Papua New Guinea. In terms of the royalty
agreement Rio Tinto has the right ("royalty rights") to receive a portion of
between 2% and 3.5% of future ounces produced by the Hidden Valley mine in Papua
New Guinea.
The consideration payable by Harmony to Rio Tinto will be US$22.5 million
settled as follows:
- 1,250,523 new ordinary shares of 50 South African cents each, to be issued
as fully paid up
- the balance of US$2.5 million payable in cash on the effective date.
The listing of the consideration shares will commence on 29 March 2007 and the
agreement is effective from the day on which the consideration is settled, being
the date of the allotment and issue of the consideration shares.
The rationale for the transaction is based on the fact that the cash costs per
ounce of gold produced at Hidden Valley will be reduced by US$13 per ounce.
The effect of the acquisition on the earnings per share and net asset value per
share of Harmony for the half-year year ended 31 December 2006, assuming the
acquisition had taken effect from 1 July 2006, will be insignificant.
Johannesburg
28 March 2007
Sponsor
Merrill Lynch South Africa (Pty) Limited
For further information contact
Bernard Swanepoel
Chief Executive - Harmony Gold
Cell. +27 83 303 9922
Amelia Soares
General Manager, Investor Relations
Cell. +27 82 654 9241
Lizelle du Toit
Investor Relations Officer
Cell. +27 82 465 1244
Date: 28/03/2007 09:30:00 Supplied by www.sharenet.co.za
Produced by the JSE SENS Department .
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