Drilling underway
at Evander
 
Johannesburg, South Africa — 1 June 2012  – South African number three gold producer Harmony Gold Mining Company has entered into an agreement in terms of which it will sell Evander Gold Mines Limited to southern African focused miner Pan African Resources.

A statement issued by Harmony Gold says that Pan African Resources will acquire Evander for a cash purchase consideration of R1.5 billion to be funded through a combination of internal cash resources, third party debt and equity.

The effective date of the Transaction is 1 April 2012, and the closing date is intended to be 31 October 2012, unless extended, subject to, inter alia, the fulfilment of the following conditions precedent:

  • Pan African Resources obtaining the relevant shareholder approval for the transaction;
  • Obtaining of all relevant regulatory approvals including exchange control approval from the Reserve Bank of South Africa, any required approvals from the various exchanges on which Pan African Resources is listed, and Competition Commission approval, and
  • Approval of the change in control of Evander by the Department of Mineral Resources.

A break fee of R50 million will be payable by Pan African Resources and will not be refundable unless the regulatory approvals described above are not fulfilled.

“We are pleased that Evander is being sold at a value within our value range. The proceeds will be received within the next six months, provided all the conditions precedent are met, which will further strengthen our cash position to meet our capital demands in support of our growth strategy”, said Harmony chief executive Graham Briggs.

Source: Harmony Gold Mining Company. For more information, click here.