JOHANNESBURG (miningweekly.com) – Harmony Gold has removed two resolutions from its meeting agenda to seek shareholder approval for the acquisition of Moab Khotsong, after reducing the potential equity capital raising from $200-million to $100-million on the back of sufficient cash resources and a strong production performance.
Harmony had planned the capital raising to secure equity capital sufficient for finalising the $300-million acquisition of Moab Khotsong from AngloGold Ashanti.
The company initially expected to settle $100-million of the offer consideration from debt facilities and the remaining $200-million was to be funded through a fully underwritten bridge loan facility.
“On December 6, Harmony announced that it expected to refinance the $200-million bridge loan facility through up to $100-million from internal cash resources and about $100-million through a potential equity capital raise,” CEO Peter Steenkamp commented.
Shareholders will, as a result, no longer need to approve the two resolutions that have been removed.
Shareholders will vote on the acquisition, which includes the Great Noligwa underground mine and related infrastructure, on February 1.
Edited by: Creamer Media Reporter
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