Harmony Gold Raises $200M to Fund Anglogold Acquisition

SEATTLE (Scrap Monster): Harmony Gold Mining Company Limited announced that it has raised $200 million through shares placement. The money will be used towards partial funding of its planned acquisition of AngloGold Ashanti’s remaining gold mine assets in South Africa.

The company placed a total of 60,278,260 new ordinary shares with existing and new institutional investors at a price of ZAR57.50 per share. J.P. Morgan Securities plc acted as Sole Global Coordinator and Joint Bookrunner along with Absa Bank Limited. The placed shares accounted for approximately 11.1% of the Company’s issued ordinary share capital before the Placing.

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Earlier in February this year, Harmony Gold had reached an agreement with AngloGold Ashanti, towards purchase of the latter’s Mponeng mine as well as its Mine Waste Solutions assets for around $300 million. Further to the acquisition, Harmony Gold will emerge as South Africa’s biggest gold producer. As per estimates, the acquisition is likely to boost its gold production by nearly 350,000 ounces per year.

Harmony Gold had received requisite shareholder approval for raising $200 million equity capital at a virtual extraordinary general meeting (EGM) held two weeks before.