HomeGoldHarmony named preferred bidder for Pamodzi

Harmony named preferred bidder for Pamodzi

Pamodzi gold mine
in the Free State
Johannesburg, South Africa — MININGREVIEW.COM — 29 June 2009 – The provisional liquidators of Pamodzi Gold Free State (Pty) Limited, which is in liquidation, have chosen Harmony Gold Mining as the preferred bidder for Pamodzi Free State’s assets.

Revealing this in a news release issued here, Harmony said the Pamodzi Free State assets consisted of President Steyn 1 and 2 shafts, Loraine 3 shaft, Freddies 7 shaft and Freddies 9 shaft, a metallurgical gold plant and a dormant tailings storage facility.

It added that the Pamodzi Free State assets would be purchased free from all liabilities, save for all associated rehabilitation and environmental liabilities. Harmony’s acquisition strategy had been focused on acquiring long-life assets that offered higher grades and had potential synergies with its own assets.

The new release went on to say that due diligence investigation had been completed, and that the outcome indicated that the Pamodzi Free State assets were a good fit with Harmony’s Free State assets.

The acceptance of Harmony’s offer by the provisional liquidators is subject to the approval of the Industrial Development Corporation of South Africa and the relevant trade unions, and the conclusion of definitive written sale agreements.

One of the essential conditions precedent to the transaction would be the conversion of Pamodzi Free State’s mining rights, and the consent to the transfer thereof by the Minister of Minerals and Energy. Harmony, together with the provisional liquidators, has agreed to give this condition precedent their urgent attention.

“Strategically this transaction is a good fit for Harmony’s Free State assets. Harmony has excellent synergies that could be leveraged in respect of tailings disposal, plant processing and management, and it would allow us to control potential issues that could influence our own mines”, said CEO Graham Briggs.