South Africa’s Harmony raises $200 million in share sale

JOHANNESBURG (Reuters) – Harmony Gold raised $200 million after issuing more than 60 million new ordinary shares to partly fund its purchase of rival AngloGold Ashanti’s last remaining South African assets, the company said on Thursday.

Harmony agreed in February to buy AngloGold Ashanti’s Mponeng mine, the world’s deepest gold mine, and its Mine Waste Solutions assets for about $300 million.

The deal will make Harmony South Africa’s biggest gold producer.

Harmony said it issued 60,278,260 new ordinary shares at a price of 57.50 rand per share, representing around 11% of the company’s issued ordinary share capital before the placing.

“We intend replicating our success in South Africa, with decades of acquiring, operating, and extending the life of mines, and extracting additional value from mining operations,” said Harmony CEO Peter Steenkamp.

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