| Wed 10 Nov 2010, 9:10 | | WGR - Wits Gold - Welcomes the Harmony group as a new Shareholder |
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WGR
WGR
WGR - Wits Gold - Welcomes the Harmony group as a new Shareholder
Witwatersrand Consolidated Gold Resources Limited
(Incorporated in the Republic of South Africa)
Registration Number 2002/031365/06
JSE Code: WGR ISIN: ZAE000079703
TSX Code: WGR CUSIP: S98297104
("Wits Gold" or "the Company")
WITS GOLD WELCOMES THE HARMONY GROUP AS A NEW SHAREHOLDER
At a general meeting on Friday, 5 November 2010, the Company`s shareholders
overwhelmingly approved a resolution which allowed the issue of 4,376,194 shares
in Wits Gold to the Armgold/Harmony Freegold Joint Venture Company (Proprietary)
Limited ("the Freegold JV"), a wholly owned subsidiary of Harmony Gold Mining
Company Limited ("Harmony"). This represents a 13.56% stake in Wits Gold and
follows the announcement of a transaction on 7 September 2010 whereby Wits Gold
agreed to purchase an option from the Freegold JV. This option permitted the
Freegold JV to acquire up to a 40% interest in any mine or mines established on
certain mineral rights held by Wits Gold in the southern Free State. The option
agreement was originally entered into between Wits Gold and the Freegold JV in
April 2004 as a consideration for mineral rights that were acquired by Wits
Gold. A second agreement was announced by Wits Gold on 7 September 2010,
involving the acquisition for R61 million in cash, of the Merriespruit South
area situated immediately north of the Company`s shallow De Bron project area.
Marc Watchorn, CEO of Wits Gold said: "We are delighted to welcome the Harmony
group as a new and important shareholder in Wits Gold. We are confident that
this strategic relationship represents an outstanding opportunity for us as we
move into our next phase of growth".
Exploration work has already commenced at Merriespruit South, where nearly 5000
metres of diamond drilling have been completed over the last two months. It is
anticipated that a comprehensive review of the contained resources will be
completed by January 2011. Wits Gold believes that the Merriespruit South area
is likely to contain significant gold mineralisation that will supplement the
resources already outlined at De Bron. The De Bron resources were presented in a
NI 43-101 compliant technical report, "Witwatersrand Consolidated Gold Resources
Limited: Mineral Properties in the SOFS Goldfield, South Africa" dated May 2009
and prepared by Qualified Persons, George Gilchrist and Shaun Hackett from
Snowden Mining Industry Consultants. These include Indicated Mineral Resources
of 23.2Mt at 5.2g/t gold (3.8Moz) and Inferred Resources of 9.4Mt at 5.3g/t gold
(1.6Moz). The abovementioned technical report is available at www.sedar.com and
www.witsgold.com.
Marc Watchorn continued: "The agreement provides Wits Gold with full control
over the advanced Bloemhoek and De Bron projects in the southern Free State. We
are also optimistic that the consolidation of the De Bron-Merriespruit South
areas, which we now refer to as the DBM project, could host a shallow mine with
much improved economics, and possibly a shorter development timeframe.
Graham Briggs, CEO of Harmony said: "This transaction allows Harmony`s
shareholders to continue participating in the exciting growth of the combined De
Bron- Merriespruit South area which is likely to unlock value for our
shareholders."
The acquisition of Merriespruit South remains subject to the consent of the
Department of Mineral Resources to add the area to Wits Gold`s existing
prospecting right by not later than 31 October 2011.
10 November 2010
Sponsor
PricewaterhouseCoopers Corporate Finance (Pty) Ltd
Date: 10/11/2010 09:10:22 Produced by the JSE SENS Department.
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