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Harmony waiting on IDC for Pamodzi swoop

I-Net Bridge | Wed, 01 Jul 2009 16:28
[miningmx.com] -- HARMONY Gold, South Africa's third-largest gold producer, on Wednesday said its bid for Pamodzi's Free State assets were dependent on unions and Industrial Development Corporation (IDC) approval.

Last week named the preferred bidder for the assets, Harmony believed the acquisition had the potential to add 150,000 ounces a year to its production, but that the assets may require a further R100m investment in the first year to restart production.

Harmony said in a presentation to analysts that transaction agreements still needed to be drafted and signed.

Any conditions precedent in the agreements would then also have to be fulfilled and the mining rights for the assets would also have to be secured before moving ahead with the deal.

To date, neither Harmony nor Pamodzi's provisional liquidators have disclosed the price Harmony has agreed to pay for the embattled mining company's Free State assets.

The Pamodzi Free State Assets will be purchased free from all liabilities, save for all rehabilitation and environmental liabilities associated with the operations.

Pamodzi Free State consists 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.

Harmony CEO, Graham Briggs, said last week that the assets could add as much as 2.5 million ounces of gold reserves to Harmony's portfolio and between 10 million and 15 million ounces of gold resources.




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