Harmony sells Evander gold mine to Pan African Resources for EUR 141.9mn.

By bne IntelliNews June 1, 2012
Harmony Gold Mining, South Africa's third largest gold producer, said it has entered into an agreement with junior miner Pan African Resources for the sale of its wholly owned subsidiary Evander Gold Mines for a cash consideration of ZAR 1.5bn (EUR 141.9mn). Pan African Resources will fund the acquisition through a mixture of debt, equity and cash. The transaction, which is subject to regulatory approvals, is expected to be finalised by the end of October 2012. In January 2012, Harmony said it had signed a sale of shares and claims agreement for Evander with a consortium comprising Pan African Resources and another junior miner, Witwatersrand Consolidated Gold Resources (Wits Gold), for ZAR 1.7bn. This agreement was terminated after the consortium failed to meet certain conditions. "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", Harmony CEO Graham Briggs said in a statement. The sale is in line with Harmonys strategy to diversify its operations, which are located primarily on the Witwatersrand Basin in South Africa, and to focus more on its highly prospective exploration portfolio and open-pit mining operation in Papua New Guinea. Pan African Resources CEO Jan Nelson said that the acquisition of Evander would double the companys annual gold production to approximately 200,000 ounces. Evander total underground resource represents 32.5 million ounces, and ? reserve of 7.6 million ounces.

Related Articles

South Africas Exxaro mulls firing striking coal miners.

South African company Exxaro Resources said one of the options it currently considers is dismissing striking coal mine workers who fail to return to work in the week of March 25, fin24 reported ... more

South Africas Telkom says there is no decision to lay off 13,000 employees.

South Africas telecommunication operator Telkom said that it has not made a decision on retrenching 13,000 employees, or more than half of its staff, TechCentral reported quoting a company ... more

BP, Masana Petroleum Solutions sell LPG business in South Africa.

Oryx Energies, a major independent provider of oil and gas products and services in Africa, has agreed to buy the South African liquefied petroleum gas (LPG) distribution businesses of BP and ... more

Register here to continue reading this article and 2 more for free or purchase 12 months full website access including the bne Magazine for just $119/year.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

To continue viewing our content you need to complete the registration process.

Please look for an email that was sent to with the subject line "Confirmation bne IntelliNews access". This email will have instructions on how to complete registration process. Please check in your "Junk" folder in case this communication was misdirected in your email system.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

If you have any questions please contact us at sales@intellinews.com

Subscribe to bne IntelliNews website and magazine

Subscribe to bne IntelliNews website and monthly magazine, the leading source of business, economic and financial news and commentary in emerging markets.

Your subscription includes:
  • Full access to the bne content daily news and features on the website
  • Newsletters direct to your mailbox
  • Print and digital subscription to the monthly bne magazine
  • Digital subscription to the weekly bne newspaper

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

bne IntelliNews
$119 per year

All prices are in US dollars net of applicable taxes.

If you have any questions please contact us at sales@intellinews.com

Register for free to read bne IntelliNews Magazine. You'll receive a free digital subscription.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

IntelliNews Pro offers daily news updates delivered to your inbox and in-depth data reports.
Get the emerging markets newswire that financial professionals trust.

"No day starts for my team without IntelliNews Pro" — UBS

Thank-you for requesting an IntelliNews Pro trial. Our team will be in contact with you shortly.

Dismiss