Harmony Acquires Pamodzi’s Free State Mine

10 September 2009 (Last Updated September 10th, 2009 18:30)

Harmony Gold Mining has finalised a deal to buy Pamodzi Gold's President Steyn mine in Free State, South Africa, for R405m. The acquisition was finalised after Pamodzi could not meet the liquidators' deadline to raise the R11m required to halt Harmony's bid and recapitalise the mine, al

Harmony Gold Mining has finalised a deal to buy Pamodzi Gold's President Steyn mine in Free State, South Africa, for R405m.

The acquisition was finalised after Pamodzi could not meet the liquidators' deadline to raise the R11m required to halt Harmony's bid and recapitalise the mine, allafrica.com reports.

Harmony declared that it had resumed talks with the provisional liquidators of Pamodzi Gold Free State and that all the acquisition agreements have now been signed.

Harmony has been in talks with Pamodzi's liquidators since April but put its bid on hold a fortnight ago when Pamodzi announced that it had received from the China Africa Development Fund, the news service said.

Harmony CEO Graham Briggs said that the company had offered a reasonable price.

"We are of the view that Harmony has offered a fair price and that, when implemented, Harmony's acquisition of the assets of Pamodzi Gold Free State will provide a sustainable, long-term future for the relevant stakeholders in the Free State," Briggs said.