The world number-five gold miner, South Africa’s Harmony, on Tuesday announced that it had decided not to exercise an option to buy shares in Australian group Bendigo Mining NL due to Harmony’s exercise price being above the company’s share price.
Harmony currently holds a 31,6% stake in Bendigo Mining.
The group owns an option that expires on Wednesday December 31, to subscribe for 360-million new shares in Bendigo at a price of Aus$0,30 per share while the current Bendigo share price is Aus$0,19 per share.
Bendigo owns all of the rights to a large gold endowment — in excess of 12,5-million ounces — at the town of Bendigo in Victoria, Australia, which has for the past two years been the target of an intensive underground exploration programme and feasibility study.
The results of this study are expected in the first quarter of 2004.
Harmony will continue to work with Bendigo and its advisors to determine the optimal method to develop this resource, Harmony said in a statement.
Harmony maintains a significant portfolio of growth opportunities in Australasia.
The company also has exploration programmes centred on its 100%-owned Mt Magnet and South Kalgoorlie mining centres in West Australia.
In addition, Harmony is actively evaluating the feasibility of commencing mining at the 50%-owned Brock’s Creek project in Australia’s Northern Territories.
Harmony also owns about 83% of Australian listed Abelle, which is currently conducting significant exploration and evaluation activities in Papua New Guinea.
The company owns the prospective Hidden Valley (Morobe) and Wafi deposits, in Papua New Guinea, which are in various stages of exploration.
A decision to proceed with the development of the Hidden Valley deposit, which has a reserve of two million ounces of gold and 29,5-million ounces of silver, is expected to be taken in the first quarter of 2004. — I-Net Bridge