Go Back Email this Link to a friend


HAR - Harmony And Monarch Renegotiate Sale

Release Date: 08/07/2008 14:48:13      Code(s): HAR
HAR - Harmony And Monarch Renegotiate Sale                                      
Harmony Gold Mining Company Limited                                             
(Incorporated in the Republic of South Africa)                                  
(Registration number: 1950/038232/06)                                           
Share code: HAR & ISIN: ZAE000015228                                            
("Harmony")                                                                     
HARMONY AND MONARCH RENEGOTIATE SALE                                            
Johannesburg. Tuesday 8 July 2008. We refer to our second quarter results       
released on SENS on 15 February 2008, wherein we advised that Harmony Gold      
Mining Company Limited ("Harmony": JSE/HAR) signed a sales contract ("contract")
with Australian-based junior miner Monarch Gold Mining Company ("Monarch":      
ASX/DIFX:MON) for the sale of Harmony`s Mount Magnet ("Mt Magnet") operations   
for A$65 million.                                                               
The Mt Magnet asset package includes Hill 50, Great Fingall, St George, Star and
Big Bell mines, which comprises a resource inventory of 2.7Moz of gold,         
tenements covering about 62,000 hectares and 166 exploration licence blocks,    
along with a 2.7Mt a year capacity plant.                                       
One of the conditions precedent of the sale was the successful capital raising  
of A$35 million by Monarch to finance the cash component of the deal by 30 June 
2008. The prevailing unfavourable financial market conditions worldwide have    
made it difficult for Monarch to raise the required funds. Consequently, Monarch
has requested an extension of four months to satisfy all the conditions         
precedent.                                                                      
Harmony and Monarch have renegotiated the terms of the sale.  Previously        
consideration for the transaction, as specified in the contract, was structured 
as follows:                                                                     
Cash                A$30 million                                                
Shares              A$20 million                                                
Convertible Note    A$15 million                                                
Total               A$65 million                                                
The proposed restructured consideration and the revised terms which require the 
approval of Monarch shareholders are as follows:                                
Cash (paid to date) A$ 5 million                                                
Cash                A$10 million                                                
Deferred Cash       A$10 million                                                
Shares              A$25 million                                                
Convertible Note    A$15 million                                                
Total               A$65 million                                                
Monarch shareholders will consider the proposed restructured consideration and  
the revised terms at the end of August 2008.                                    
The immediate cash requirement has been reduced by A$15 million and a deferred  
payment of A$10 million (payable on the earlier of, production of 50,000oz or   
the third anniversary of the closing date) and an increase in the share         
allocation of A$5 million (equivalent).                                         
Graham Briggs, chief executive officer of Harmony says, "We believe the         
restructured consideration will allow Monarch to complete the transaction and   
allow them to focus on the redevelopment of the Mt Magnet asset."               
ends.                                                                           
Issued by Harmony Gold Mining Company Limited                                   
For more details contact:                                                       
Graham Briggs                                                                   
Chief Executive Officer                                                         
on +27(0)11 411 2012                                                            
or                                                                              
Amelia Soares                                                                   
General Manager, Investor Relations                                             
on +27 11 411 2314 or                                                           
+27 (0)82 654 9241                                                              
8 July 2008                                                                     
Sponsor                                                                         
Merrill Lynch South Africa (Pty) Limited                                        
Date: 08/07/2008 14:48:12 Supplied by www.sharenet.co.za                     
Produced by the JSE SENS Department                             .                  
The SENS service is an information dissemination service administered by the    
JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or            
implicitly, represent, warrant or in any way guarantee the truth, accuracy or   
completeness of the information published on SENS. The JSE, their officers,     
employees and agents accept no liability for (or in respect of) any direct,     
indirect, incidental or consequential loss or damage of any kind or nature,     
howsoever arising, from the use of SENS or the use of, or reliance on,          
information disseminated through SENS.                                          



                                        
Email this JSE Sens Item to a Friend.

Send e-mail to
© 2019 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.