Harmony Gold Corp. Provides Update on Change of Business Transaction with Full Metal Minerals Ltd.
#200 – 551 Howe Street Vancouver, BC V6C 2C2 Tel: 604 683 8610 Fax: 604 793 4499 Trading Symbol: H.H
Harmony Gold Corp. Provides Update on Change of Business Transaction with Full Metal Minerals Ltd.
Vancouver, BC, February 2, 2010 – Harmony Gold Corp. (the “Company”) wishes to provide an update on its transaction with Full Metal Minerals Ltd. (“Full Metal”) and Full Metal’s wholly owned subsidiary Full Metal Minerals (USA), Inc. (collectively, “Full Metals”) to acquire a 60% interest in and to Full Metals’ rights, obligations and benefits to the Lucky Shot Property, Alaska (the “Transaction”) and the “part and parcel” private placement (the “Private Placement”) initially announced on November 9, 2009. The Transaction constitutes a “Change of Business” under the TSX Venture Exchange’s policies and accordingly the Company has filed a comprehensive submission, including a filing statement which the Company will use as its base disclosure document for seeking shareholder approval as required by policies of the Exchange. Once the filing statement has been conditionally accepted by the Exchange, the Company intends to seek shareholder approval to the Transaction by way of written consent of a majority of its shareholders.
The Company’s shares have been halted from trading since November 11, 2009, however the Company has filed sufficient material with the Exchange such that the Exchange has consented to the resumption of trading. The Company expects its shares to resume trading immediately under the symbol H.H.
Final acceptance to the Transaction is subject to the Company completing the Private Placement. On completion of the Transaction, the Company will be listed as a Tier 2 issuer on the Exchange trading under the symbol H.
The Private Placement is for units of the Company at a price of $0.35 per unit (each a “Unit”) to raise gross proceeds of up to a maximum of $5 million dollars. Each Unit will consist of one common share and one half of a transferable share purchase warrant, each whole warrant exercisable into an additional common share of the Company for a period of one year at a price of $0.65 per common share.
The Company will pay finders, a cash finder’s fee equal to 8% of the Units subscribed for under the Private Placement as well as a finder’s fee in the form of common share purchase warrants (the “Finder’s Warrants”) equal to 8% of the number of Units subscribed for under the Private Placement. Each Finder’s Warrant will entitle the holder to purchase an additional common share of the Company at a price of $0.65 per share for a period of 12 months.
The proceeds of the Private Placement will be used to fund option payments and work programs to be conducted by the Company on the Lucky Shot Property, Alaska and for general and administrative expenses.
A National Instrument 43-101 compliant technical report on the Lucky Shot Property, Alaska has been prepared by Donald L. Stevens, Ph.D., P.Geo., and has been filed on SEDAR at www.sedar.com.
.
Per: “Craig M. Engelsman”
Craig Michael Engelsman President Telephone: 778 370 0519 E-mail: [email protected]
NEITHER TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.