HARMONY DISPOSES OF ITS SHAREHOLDING IN HIGHLAND G
Harmony Gold Mining Company Limited (NYSE: HMY JSE: HAR) today announced that it
had sold its 31.7% shareholding in Highland Gold Mining Limited in a placing
arranged by City Capital Corporation Limited in London. The price of GBP2.05 per
share achieved in the placing values the shareholding at approximately R830
million and represents a gain of R510 million.
As stated in its annual report, the company"s investment in Highland Gold, as
with all of its strategic investments, depended on its assessment of whether it
could add additional value to or whether it was able to either control or exert
significant influence over such an investment. As the Board was not able to
satisfy itself that these criteria could be met in the short term, it decided to
exit at what it believes is an attractive price.
"Highland Gold has been an extremely profitable investment for Harmony and has
also served to broaden our understanding of the highly prospective gold mining
environment in Russia. Harmony wishes Highland Gold continued success with its
ongoing development," commented Bernard Swanepoel, Chief Executive.
Peter Daresbury, Chairman of Highland Gold said: "We would like to thank the
Board of Harmony for their energy and expertise during the creation and
development of Highland Gold and we are grateful in particular to Ted Grobicki,
Peter McKenna and Mike Pleming for their service as non-executive directors on
our Board."
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