| Tue 4 Sep 2007, 8:25 | | HAR - Harmony Gold Mining Company Limited - Harmon |
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HAR
HAPS
HAR - Harmony Gold Mining Company Limited - Harmony officially signs deal
with Pamodzi Gold
HARMONY GOLD MINING COMPANY LIMITED
Incorporated in 1950
Registration number 1950/038232/06
Share code: HAR
NASDAQ, NYSE: HMY
ISIN: ZAE000015228
HARMONY OFFICIALLY SIGNS DEAL WITH PAMODZI GOLD
Harmony Gold Mining Company Limited (Harmony) announces that it has
officially signed formal agreements with Pamodzi Gold Limited (Pamodzi Gold)
for the sale to all rights, title and interest of Orkney shafts located near
Orkney in the North West province.
Pamodzi Gold has engaged Harmony in order to take management control of the
Orkney operations under a contracting agreement by the 1 October prior to
the all conditions precedent being met. Harmony has agreed in principle to
this arrangement and both parties envisage signing a formal agreement within
the next three weeks.
The initial purchase consideration payable to Harmony by Pamodzi Gold for
the Orkney shafts is equal to R550 million, and a secondary consideration is
calculated as follows: -
- 3% of the net smelter revenues in respect of the first one million
ounces of gold produced by Orkney after the effective date of the
transaction; and
- 1.75% of the net smelter revenue in respect of all gold produced by the
Orkney thereafter subject to an maximum aggregate amount of R450 m
illion.
The initial Orkney purchase consideration will be settled by Pamodzi Gold
through:
- the payment of a cash amount of R350 million; and
- the issue of 9,272,903 ordinary consideration shares to Harmony.
The number of Pamodzi Gold ordinary shares to be issued to Harmony has
been calculated based on the 30 day VWAP of the Pamodzi Gold ordinary
share price on the JSE up to the business day immediately preceding the
date upon which the detailed cautionary was announced, being 24 April
2007, which VWAP is equal to R21.57.
The transaction is subject to, amongst others, the following conditions
precedent:
- the shareholders of Pamodzi Gold passing all resolutions necessary in
order to approve and implement the Orkney transaction;
- Harmony converting its Old Order Mining Right to a New Order Mining
Right in terms of Item 7 of Schedule 2 of the MPDRA;
- the Minister of Minerals and Energy consenting to the transfer of the
New Order Mining Right to Pamodzi Gold in terms of section 11 of the
MPRDA; and
- Pamodzi Gold obtaining funding for payment of the initial Orkney
purchase consideration.
Graham Briggs, acting Chief Executive says, "The official signing of the
agreement highlights the willingness of both parties to meet the conditions
precedent in order to successfully conclude the transaction by October
2007."
ends.
Issued by Harmony Gold Mining Company Limited
4 September 2007
For more details contact:
Graham Briggs
Acting Chief Executive
on +27(0)83 265 0274
or
Amelia Soares
General Manager, Investor Relations
on +27(0)82 654 9241
or
Lizelle du Toit
Investor Relations Officer
on +27(0)82 465 1244
Sponsor
Merrill Lynch South Africa (Pty) Limited
Date: 04/09/2007 08:25:52 Produced by the JSE SENS Department.
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