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.