JOHANNESBURG (miningweekly.com) – Gold major Harmony has clinched the provisionally liquidated Pamodzi Gold Free State, liquidator Enver Motala confirmed to Mining Weekly Online late on Tuesday.

Harmony, which had suspened its position as the preferred bidder to facilitate the late but failed entry of the China Africa Development Fund, returned to the negotiations to ink the deal for the Pamodzi Gold asset,  which Harmony's other Free State gold mines surround.

With  the black economically empowered company Aurora having secured Pamodizi Gold Orkney, all that remains to be bought out of provisional liquidation are Pamodzi Gold East Rand and West Rand. Aurora was also eyeing Pamodzi Gold Free State, was may have prompted Harmony to quit stalling and to consummate the deal before Aurora pipped it at the post.

Harmony paid R405-million for Pamodzi Gold Free State and Aurora R215-million for Pamodzi Gold Orkney. Harmony has its own cash and Aurora is backed by Malaysian and Middle Eastern funding.

The failed China Africa Development Fund bid was made in tandem with the founders of Pamodzi Gold, Ndaba Ntsele and Kobus Du Plooy.

Pressing care-and-maintenance and salary needs have, however, forced the liquidators to proceed with the Harmony transaction, in order to ensure that there is sufficient interim funding.

Aurora, which has opted for a Section 311 offer of compromise, will be able to accelerate a return to full commercial mining at a time of gold once again attracting a price of $1 000/oz. Harmony, which has decided not to take the 311 route, will have to wait for the mining rights to be transferred into its name.

Aurora is putting 870 miners through their medical to allow mining to resume and are about to implement a detailed production plan.

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