Harmony Gold has announced that it has repaid a further US$100 million on the original US$200 million bridge loan raised for the acquisition of Moab Khotsong.
“Harmony believes in having a robust and flexible balance sheet that supports its growth ambitions,” says CEO Peter Steenkamp.
“We have used the proceeds from the oversubscribed share placement announced on 6 June 2018 to repay US$100 million of the bridge facility. Production at Moab Khotsong
in the past three and a half months support our view that the mine is a quality
asset and it will strengthen Harmony’s cash flows further”.
The remaining balance outstanding of US$50 million on the bridge loan is expected
to be repaid from operating cash flows as well as the proceeds from the share
placement to African Rainbow Minerals.
In February the Department of Mineral Resources granted consent in terms of section 11(2) of the Mineral and Petroleum Resources Development Act, 2002 (Act 28 of 2002), to cede the Moab Khotsong mining right to Harmony, fulfilling one of the most important conditions precedent towards the completion of the Moab Khotsong transaction.
“The approval confirms government’s support of the transaction which will enhance the quality of our asset portfolio and increase our profit margins”, notes Harmony Gold CEO Peter Steenkamp.