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Pamodzi Gold transaction on Orkney assets becomes unconditional

Johannesburg. Monday, 25 February 2008. Harmony Gold Mining Company Limited (Harmony) is pleased to announce that all conditions precedent in respect of the transaction entered into with Pamodzi Gold Limited (Pamodzi Gold) regarding the sale of the Orkney assets have been met. Pamodzi Gold will take full control of the Orkney assets as from 27 February 2008.

Harmony and Pamodzi Gold entered into the transaction in September 2007. The original consideration price would have been settled by a combination of cash, the issue of Pamodzi Gold shares and a secondary consideration, being a net smelter royalty. The increase in capital required for re-capitalization of the assets and the recent operational results have resulted in the consideration price being re-negotiated.

The purchase consideration has been reduced from R550 million to R300 million and will be settled by Pamodzi Gold issuing 30 million shares to Harmony. No cash payment or secondary consideration will be required. As a result, Harmony will hold approximately 32% of Pamodzi Gold’s issued share capital.

“We believe that Pamodzi Gold will be able to extract value from the Orkney assets. By increasing our holding, we will be able to share in the upside of the assets over a longer term, which is line with our existing strategy”, says Graham Briggs, Chief Executive Officer of Harmony.

For more details contact:

Graham Briggs
Chief Executive Officer
+27 (0)11 411 2023
+27 (0)83 265 0274

Amelia Soares
General Manager, Investor Relations
+27 (0)11 411 2314
+27 (0)82 654 9241

Marian van der Walt
Company Secretary
+27 (0)11 411 2037
+27 (0)82 888 1242

Annual report

Integrated annual report 2016
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Investor brief

Harmony Investor brief, Sep 2017
September 2017 -
Harmony Investor brief

(PDF - 6.5MB)

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