Exchange of mining right portions between Sibanye Gold and Harmony
Westonaria, 8 November 2013: Sibanye Gold (JSE: SGL & NYSE: SBGL) wishes to inform shareholders that it has entered into an agreement with Harmony Gold Mining Company Limited (“Harmony”) for the exchange and sale of certain mining right portions of its Beatrix Operations in the Southern Free State for certain mining right portions of Harmony’s Joel Operation (the “Transaction”).
In terms of the Transaction, Sibanye Gold will exchange two mining right portions at its Beatrix Operation, which are not included in its current Life of Mine (LOM) profile, for two mining right portions at Harmony’s Joel Operation, which will be more readily accessible from the Beatrix North and South Sections. The Company will also sell a further two mining right portions at its Beatrix Operation to Harmony for a royalty of 3% of net revenue derived from underground mining from these portions.
The Transaction will create value for both companies by allowing the early and optimal extraction of resources currently not in their respective LOM plans. By utilising available capacity at existing and adjacent infrastructure, the cost of extracting these resources will be lower and the operating lives of the shafts will be extended, facilitating job creation in the region.
Neal Froneman, CEO of Sibanye Gold, commenting on the Transaction said: “Much has been said in the past about the potential to unlock value in the South African Gold Industry by breaking down the farm fences and I believe that there remains significant potential to create meaningful value for shareholders through similar transactions in future.”
The Transaction is below the JSE transaction thresholds and is for information purposes only.
Head of Corporate Affairs Sibanye Gold Limited
+27 83 453 4014
J.P. Morgan Equities South Africa Proprietary Limited