Harmony Sells Kalgold To Aflease
Harmony Gold Mining Company Limited
Registration number: 1950/038232/06
Share Code: HAR
ISIN: ZAE000015228
Johannesburg, 7 November 2003 - Harmony Gold Mining Company Limited
(NYSE: HMY JSE: HAR) today announced that it had sold its Kalgold Operations to
The Afrikander Lease Limited (Aflease) for a consideration of R275 million.
In terms of the agreement, Aflease will pay Harmony an amount of R137,5 million
in cash, with the remaining R137,5 million being funded with the issue of
ordinary shares at a price of R5,35, which is based on the seven day volume
weighted average Aflease share price.
A total of 25 700 935 shares will be issued to Harmony.
"Whilst Kalgold has consistently delivered cash operating profit of R10,0
million per quarter, the disposal thereof is in line with our strategy of
upgrading the quality of our production base. The proceeds from this disposal
further strengthens our balance sheet and our ability to fund the development of
our quality growth projects," commented Bernard Swanepoel, Chief Executive.
Harmony will retain its interest in the company"s Kalplats platinum discovery
and associated mineral rights.
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