The Mount Magnet
mine processing area,
with the town in
background
 
Johannesburg, South Africa — MININGREVIEW.COM — 05 August 2008 – The agreement in terms of which Harmony Gold Mining Company Limited planned to sell its Mt. Magnet operation in Western Australia to Australian-based junior miner Monarch Gold Mining Company has fallen through and Harmony is looking for a new buyer.

A media release issued here revealed that Monarch had placed itself in voluntary administration, and that the administrator had indicated that as Monarch would not proceed with the proposed purchase the agreement had consequently been terminated. Harmony had received from Monarch a deposit of A$5 million (R34 million), of which A$2.5 million (R17 million) was refundable.

The release added that Harmony had resumed management of the operation and had re-commenced the sale process.

Although Mt Magnet has significant exploration potential, the current remaining reserves provide less than one year’s production, and therefore the decision was made to mine the remaining ore, place the mine into care and maintenance, and put it up for sale as an exploration play.

The Mt Magnet asset package includes Hill 50, Great Fingall, St George, Star and Big Bell mines, which comprise a resource inventory of 2.7Moz of gold, tenements covering about 62 000 hectares and 166 exploration licence blocks, along with a 2.7Mtpa capacity plant.