Harmony Gold Mining Co. Ltd.'s Johannesburg shares were down about 9% in afternoon trading after it raised about US$82 million via a share placement and a subscription by its black economic empowerment partner. It originally sought to raise about US$100 million.
The company said June 6 that it placed 55,055,050 common shares at 19.12 South African rand per share to raise about 1.05 billion rand. The shares were offered at an 11.7% discount to their June 5 closing price.
The company's black economic empowerment partner, African Rainbow Minerals Ltd., agreed to subscribe for about 11,032,623 shares at the same price to maintain its 14.29% stake.
Harmony had said it would use the proceeds to partially repay a US$150 million bridge loan raised to acquire the Moab Khotsong gold mine in South Africa. The remaining loan will be repaid from internal operating cash flows, existing cash resources and existing undrawn debt facilities.
