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Avmin/ARMI/HARMONY - Creation of South Africa"s largest diversified empowered
mineral resources company
Anglovaal Mining African Rainbow Harmony Gold Mining
Limited Minerals & Exploration Company Limited
(Incorporated in the Investments (Incorporated in the
Republic of South (Proprietary) Limited Republic of South
Africa) (Incorporated in the Africa)
(Registration number Republic of South (Registration number
1993/004580/06) Africa) 1950/038232/06)
(Share code: AIN) (Registration number (Share code: HAR)
(ISIN code: 1997/020158/07) (ISIN code:
ZAE000017141) ("ARMI") ZAE000015228)
("Avmin") ("Harmony")
Creation of South Africa"s largest diversified empowered mineral resources
company
All objectives of Avmin"s strategic review achieved earlier than planned -
empowerment and strong financial base for future growth
Avmin will dispose of its entire 42.2% interest in Avgold to Harmony, the
consideration for which will be discharged by the issue of new Harmony shares
("the Avgold Share Disposal)
Avmin will acquire from the ARM group of companies("ARM"):
ARM"s entire indirect 13.6% interest in Harmony;
ARM"s 41.5% effective interest in the Modikwa Joint Venture;
the consideration for which will be discharged by the issue of new Avmin shares
to ARM or its nominee (collectively referred to as the "Avmin Acquisitions");
Avmin will acquire the Kalplats platinum discovery and associated mineral rights
from Harmony, the consideration for which will be discharged by the issue of new
Avmin shares ("the Kalplats Acquisition") to Harmony
Harmony will merge its remaining shares in Avmin with the Avmin shares
controlled by ARM, post the above transactions, either through a sale
transaction or a voting pool arrangement ("The ARM Control Structure")
Avmin will acquire the Kalplats platinum discovery and associated mineral rights
from Harmony, the consideration for which will be discharged by the issue of new
Avmin shares to Harmony
ARM to have effective control over Avmin, creating an empowered diversified
mineral resources company; Avmin shareholders to benefit from new status
Patrice Motsepe to become Chairman and Rick Menell the Deputy Chairman of Avmin,
post the transaction
All parties have agreed that Avmin will change its name to African Rainbow
Minerals Limited
Shareholders advised to exercise caution when dealing in the shares of Avmin and
Harmony
13 November 2003
Rick Menell, Chairman of Avmin commented:
"This is a pioneering transaction, which delivers on our strategic objectives of
becoming a fully empowered company with a strong financial base to develop our
exciting project pipeline. We are now the largest empowered and diversified
mining company in South Africa which will bring new opportunities as we are seen
to be the preferred partner in the market. The terms of the transaction are
favourable to our shareholders and we are well placed to unlock further value as
we go forward."
Patrice Motsepe, Chairman of ARMI commented:
"Whilst this transaction allows ARMI to venture outside the gold industry, we
will be retaining a significant exposure to Harmony through Avmin. ARM and the
Maandagshoek communities who constitute our broad based BEE partners also have
an opportunity to crystallise value for our Modikwa investment. We are extremely
excited about the opportunities that will be created by the creation of this
world class, truly South African diversified mineral resources company."
Bernard Swanepoel, CEO of Harmony commented:
"The proposed acquisition of Avgold fits well with our strategy of delivering
real value to our shareholders. Harmony has evolved from a once lease bound
marginal operation in the Free State, to the 5th largest gold producer in the
world. Our production base of some 4 million ounces per annum will be
significantly upgraded by the contribution from the world class Target Mine. We
are extremely excited with the potential of the Target North area which is one
of the best quality undeveloped orebodies in the world.""
ANALYST AND MEDIA PRESENTATION:
A presentation in this regard will be held at 10:00 today, 13 November 2003, at
the Michelangelo Hotel (L"Incontro Room), Sandton Square, West Street, Sandown.
The presentation will also be broadcast live on Summit TV, DSTV Channel 55 from
10am, and will be webcast live on the Avmin and Harmony websites:
www.avmin.co.za and www.harmony.co.za
Enquiries:
Avmin Tel: 011 634 9111
Ebrahim Takolia, Investor Relations Cell: 083 291 3384
ARMI
Patrice Motsepe Tel:(011) 883 5606
Harmony
Bernard Swanepoel Cell: 083 303 9922
Ferdi Dippenaar Cell: 082 807 3684
Corne Bobbert Cell: 083 380 6614
College Hill Tel: 011 447 3030
Nicholas Williams Cell: 083 607 0761
Alice Jordan Cell: 083 448 2650
Date: 13/11/2003 08:27:24 AM Supplied by www.sharenet.co.za
Produced by the JSE SENS Department
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