HomeGoldHarmony given green light to acquire Pamodzi properties

Harmony given green light to acquire Pamodzi properties

Pamodzi gold mine
in the Free State
Johannesburg, South Africa — MININGREVIEW.COM — 27 July 2009 – Harmony Gold Mining Company “’ the preferred bidder for Pamodzi Gold Limited’s mines in the Free State province “’ has received the provisional liquidator’s approval to acquire the properties.

“We’re busy with the agreements and may sign them during the course of the week,”, liquidator for the Pamodzi assets Enver Motala confirmed by phone to Bloomberg News. “State-owned financing agency the Industrial Development Corporation and the National Union of Mineworkers have approved Harmony’s takeover of the assets,” he added.

Harmony said last month that the Pamodzi mines might add between 10 and 15 million ounces of gold resources to its portfolio. The properties were placed under provisional liquidation after Pamodzi ran short of funds and its shares were suspended from trading in Johannesburg.

“Final terms still need to be agreed upon,” Harmony spokeswoman Marian van der Walt, said in a telephone interview. “The acquisition is also subject to the transfer of mining rights to Harmony by the government,” she added.

Harmony fell 76 cents, or 1% on Friday to close at R72.74 in JSE trading, reducing its market value to R31 billion rand.