AVGOLD LIMITED - CAUTIONARY ANNOUNCEMENT
Avgold Limited
Registration number 1990/007025/06
(Incorporated in the Republic of South Africa)
(Share code: AVG)
(ISIN code: ZAE000012175)
("Avgold")
CAUTIONARY ANNOUNCEMENT
Shareholders of Avgold are referred to the detailed joint cautionary
announcement to the shareholders of Anglovaal Mining Limited ("Avmin") and
Harmony Gold Mining Company Limited ("Harmony") which was published on 13
November 2003 (`the cautionary announcement").
As part of the transactions referred to in the cautionary announcement, Avmin
will, if the transaction is implemented, dispose of its entire shareholding of
286 305 263 ordinary shares in Avgold to Harmony (`the Avgold share disposal")
for a consideration to be settled by the issue to Avmin of 28 630 526 new
Harmony shares. This represents a ratio of one Harmony share for every ten
Avgold shares.
On implementation of the Avgold share disposal, Harmony will hold in excess of
35% of the issued share capital of Avgold. In terms of the Securities
Regulation Code on Takeovers and Mergers and Rules of the Securities Regulation
Panel ("the Code"), Harmony will then be required to extend a mandatory offer to
the other shareholders of Avgold ("the Avgold minority shareholders") for the
remaining 46.3% of Avgold in accordance with the requirements of the Code.
Accordingly, Harmony will then extend an offer to the Avgold minority
shareholders to acquire all or part of their Avgold shares in accordance with
the requirements of the Code.
A further announcement will be made on SENS and in the press as soon as the
requisite legal agreements have been signed and the financial effects finalised.
Accordingly, Avgold shareholders are advised to exercise caution when trading in
their shares until a further announcement is made.
Johannesburg
13 November 2003
Sponsor
Merrill Lynch South Africa (Pty) Limited
Date: 13/11/2003 05:42:03 PM Supplied by www.sharenet.co.za
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