Stake: for Harmony Gold, the call to the market allows it to complete its financial round.
Officially announced in February, Harmony Gold’s acquisition of AngloGold’s last South African gold assets for $300 million was to be partly financed by raising funds on the markets. This has now been done.
In a press release issued on June 25, Harmony Gold’s management announced that it had raised $200 million on the Johannesburg Stock Exchange through a capital increase. This financial operation consists of increasing the company’s share capital by creating new shares, which are then bought on the stock market by shareholders (old or new). In detail, 60,278,260 new shares were issued at a price of Rand 57.50 ($3.29) per share, the company said, representing about 11 per cent of Harmony’s total outstanding shares. Commenting on the successful fund-raising, Peter Steenkamp, Harmony’s CEO, said that the company he leads « intends to replicate [its] success in South Africa, with decades of acquisition, operation and mine life extension, and to extract additional value from [these new] mining operations. Most importantly, the takeover of Anglogold’s South African assets will enable Harmony Gold to scale up from being the Rainbow Nation’s third largest gold producer to South Africa’s largest yellow metal producer.
In February, Harmony agreed to buy AngloGold Ashanti’s South African mining assets, including the Mponeng site, the world’s deepest gold mine, and First Uranium Corporation, a subsidiary of AngloGold specialising in the reprocessing of mining waste, for $300 million, of which $200 million will be paid in cash immediately.
Location of the main South African mine sites operated by Harmony Gold.
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