/ 9 September 2009

Harmony to proceed with Pamodzi acquisition

Harmony Gold is going ahead with the acquisition of the Pamodzi Gold Free State mine, it said on Wednesday.

All of the acquisition agreements had now been signed, Harmony said in a statement.

The company confirmed it had previously suspended its negotiations with the provisional liquidators of Pamodzi Gold Free State ”in order to allow all stakeholders an opportunity to assess the proposed recapitalisation of the Pamodzi Gold group of companies and the likelihood of it succeeding”.

Harmony said the liquidators, the secured creditor the Industrial Development Corporation, the National Union of Mineworkers and Solidarity had opposed the proposed recapitalisation of the Pamodzi Gold group of companies.

”These parties have confirmed that they support Harmony’s acquisition and are of the view that it is the most suitable option available to stakeholders generally.”

Harmony CEO Graham Briggs said Harmony had offered a fair price and that, when implemented, Harmony’s acquisition of the assets of Pamodzi Gold Free State would provide a sustainable, long-term future for all involved in the mine.

”We have acted in good faith throughout the negotiation process,” Briggs said. — Sapa