HAR - Harmony Gold Mining Company Limited - Harmony further optimises value for Release Date: 07/09/2010 12:10:01 Code(s): HAR
HAR - Harmony Gold Mining Company Limited - Harmony further optimises value for
Harmony Gold Mining Company Limited
Registration number 1950/038232/06
Incorporated in the Republic of South Africa
JSE share code: HAR
("Harmony" or "the company")
HARMONY FURTHER OPTIMISES VALUE FOR SHAREHOLDERS
Merriespruit South region and Freegold option
Johannesburg. Tuesday, 7 September 2010. Harmony Gold Mining Company Limited
(Harmony) is pleased to announce that it has completed two transactions with
Witwatersrand Consolidated Gold Resources Limited (Wits Gold).
In terms of these transactions, Wits Gold will obtain a prospecting right over
Harmony`s Merriespruit South area and the option held by ARMGold/Harmony Joint
Venture Company (Proprietary) Limited (Freegold), a wholly owned subsidiary of
Harmony. The option was to acquire a beneficial interest of up to 40% in any
future mines established by Wits Gold on certain properties in the Southern Free
State (Freegold option), this will be cancelled.
The total consideration price of the transactions is R336 million, (R61 million
for the prospecting area and R275 million for the cancellation of the option
agreement) which will be settled in cash or in a combination of cash and shares
in Wits Gold. The agreements were signed on 3 September 2010 and outstanding
conditions precedent are expected to be fulfilled within the next 9 months.
Harmony will abandon a portion of its mining right in respect of the
Merriespruit South area to enable Wits Gold to include this area in its
prospecting right, which is located immediately south of the Merriespruit South
area. The disposal of the Merriespruit South area does not have any impact on
the existing Merriespruit 1 mining operations.
Harmony`s Chief Executive Graham Briggs says, "The Merriespruit South area and
the Freegold option do not fit into our portfolio. Therefore these transactions
are in line with Harmony`s strategy to focus on our growth projects in South
Africa. This is an exciting opportunity for Wits Gold and will unlock value for
For more details contact:
Executive: Reserves, Projects and New Business
On +27 (0)83 395 3810
Investor Relations Officer
On +27 (0)82 759 1775
Randfontein Office Park
PO Box 2
South Africa 1760
T: +27 11 411 2000
Qinisele Resources (Pty) Limited
J.P. Morgan Equities Limited
Date: 07/09/2010 12:10:01 Supplied by www.sharenet.co.za
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