HAR - Harmony - Transaction With Pamodzi Gold Limited, In Respect Of Orkney Release Date: 25/02/2008 09:27:51 Code(s): HAR HAR - Harmony - Transaction With Pamodzi Gold Limited, In Respect Of Orkney
Assets, Unconditional
HARMONY GOLD MINING COMPANY LIMITED
Registration number 1950/038232/06
Incorporated in the Republic of South Africa
ISIN: ZAE000015228
JSE share code: HAR
TRANSACTION WITH PAMODZI GOLD LIMITED, IN RESPECT OF ORKNEY ASSETS,
UNCONDITIONAL
Johannesburg, Monday, 25 February 2008. Harmony Gold Mining Company Limited
(Harmony) is pleased to announce that all conditions precedent in respect of the
transaction entered into with Pamodzi Gold Limited (Pamodzi Gold), regarding the
sale of the Orkney assets, have been met. Pamodzi Gold will take full control
of the Orkney assets as from the 27th of February 2008.
Harmony and Pamodzi Gold entered into the transaction in September 2007. The
original consideration price would have been settled by a combination of cash,
the issue of Pamodzi Gold shares and a secondary consideration, being a net
smelter royalty. The increase in capital required for re-capitalization of the
assets and the recent operational results, have resulted in the consideration
price being re-negotiated. The purchase consideration has been reduced from
R550 million to R300 million and will be settled by Pamodzi Gold issuing 30
million shares to Harmony. No cash payment or secondary consideration will be
required. As a result, Harmony will hold approximately 32% of Pamodzi Gold`s
issued share capital.
"We believe that Pamodzi Gold will be able to extract value from the Orkney
assets. By increasing our holding, we will be able to share in the upside of
the assets over a longer term, which is line with our existing strategy", said
Graham Briggs, chief executive officer of Harmony.
Issued by Harmony Gold Mining Company Limited
25 February 2008
For more details contact:
Graham Briggs
Chief Executive
on +27(0)11 411 2023 or +27 083 265 0274
or
Amelia Soares
General Manager, Investor Relations
on +27 11 411 2314 or
+27 (0)82 654 9241
or
Marian van der Walt
Company Secretary
on +27 11 411 2037 or
+27 082 888 1242
Sponsor
Merrill Lynch South Africa (Pty) Limited
Date: 25/02/2008 09:27:51 Supplied by www.sharenet.co.za
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