AFLEASE GOLD AND URANIUM RESOURCES LIMITED - AFLEA
AFLEASE GOLD AND URANIUM RESOURCES LIMITED - AFLEASE TO
ACQUIRE THE RIGHTS TO HARMONY`S URANIUM
Aflease Gold and Uranium Resources Limited
(Formerly The Afrikander Lease Limited)
(Incorporated in the Republic of South Africa)
(Registration number 1921/006955/06)
Share code: AFL ISIN: ZAE000000253
(`Aflease`)
Aflease to acquire the rights to Harmony`s uranium
Investec Bank Limited is authorised to announce that
Aflease has entered into an agreement in principle with
Harmony Gold Mining Company Limited (`Harmony`) whereby
Aflease will acquire the right to mine, process and
market all of Harmony`s uranium (`the proposed
transaction`). This resource is estimated to consist of
155 million lbs U3O8 of high grade dump and tailings
material, which could start producing uranium in about 2
years. A further 145 million lbs U3O8 low grade tailings
has also been delineated as a future target. The Harmony
uranium deposits are situated predominately to the west
of Johannesburg and in the Free State province.
These rights have been acquired for R200 million and
payment to Harmony would be by way of Aflease scrip. In
addition Harmony will receive a royalty as and when these
resources are brought to account
Neal Froneman, chief executive officer of Aflease, said:
`By acquiring Harmony`s uranium interests, Aflease will
now have a uranium resource of more than 600 million
lbs.` `This firmly places Aflease among the top 10
international uranium companies.` `We are very pleased
to be part of a long term relationship like this. It will
create value for both Aflease and Harmony.` `There is
huge window of opportunity for producers that can bring
uranium production on stream within the next five years.`
`We, in Aflease, plan to seize that opportunity with both
hands.`
The transaction is subject to the drawing up of a
detailed agreement, normal regulatory approvals, various
levels of due diligence, and the approval of the boards
of both companies. Shareholders will be kept fully
informed of developments.
Cautionary announcement
The proposed transaction, if successfully concluded, may
have an effect on the market price at which Aflease`s
shares trade. Aflease shareholders are accordingly
advised to exercise caution in dealing in their Aflease
shares until a further detailed announcement is made.
Johannesburg
3 February 2004
Corporate advisor to the Sponsor
transaction
Investec Corporate Finance Nedbank
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