HAR - Harmony Gold Mining Company - Announcement Release Date: 31/07/2007 08:07:53 Code(s): HAR
HAR - Harmony Gold Mining Company - Announcement
HARMONY GOLD MINING COMPANY LIMITED
Incorporated in 1950
Registration number 1950/038232/06
Share code: HAR
NASDAQ, NYSE: HMY
Johannesburg, 31 July 2007. Harmony Gold Mining Company Limited
(Harmony) announces that it has signed an agreement with Dioro
Exploration NL (Dioro) for the sale to all rights, title and interest
of the South Kal Mine Operations located near Kalgoorlie, Western
Dioro Exploration NL (Dioro) is an ASX listed company with diversified
mineral interests in Western Australia.
The sale of the South Kal Mine to Dioro is subject to and conditional
upon the fulfilment of the following significant conditions precedent:
1. Dioro obtaining from its shareholders the necessary approval to
conclude the transaction of this agreement.
2. Dioro raising the required capital of at least A$35 million
(approximately R210 million) in terms of this agreement for the
acquisition of South Kal.
3. The obtaining by the parties of all governmental and other
regulatory approvals necessary for the conclusion and implementation
of the agreement
The consideration payable to Harmony by Dioro for the sale of the
assets is as follows:
- the sum of A$25 million (approximately R150 million) payable in cash
to Harmony on completion; and
- the issue of the Consideration Shares to the value of A$20 million
(approximately R120 million) to Harmony.
The closing date of the transaction is expected to be during October
Bernard Swanepoel, Harmony`s Chief Executive says, "the proposed sale
of South Kal is in line with our three-pronged strategy of which
disposals is one component. The sale of these assets will bring
further efficiency gains and provide capital for our higher value
projects in South Africa and Papua New Guinea."
Issued by Harmony Gold Mining Company Limited
31 July 2007
For more details contact:
on +27(0)83 303 9922
Investor Relations General Manager
on +27(0)82 654 9241
Lizelle du Toit
Investor Relations Officer
on +27(0)82 465 1244
Merrill Lynch South Africa (Pty) Limited
Date: 31/07/2007 08:07:53 Supplied by www.sharenet.co.za
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