Harmony Closes Non-Brokered Private Placement and Receives Final Approval for Change of Business
#200 – 551 Howe Street Vancouver, BC V6C 2C2 Tel: 604 683 8610 Fax: 604 793 4499 Trading Symbol: H.H
HARMONY CLOSES NON-BROKERED PRIVATE PLACEMENT AND RECEIVES FINAL APPROVAL FOR CHANGE OF BUSINESS
Vancouver, BC, February 23, 2010 – Harmony Gold Corp. (the “Company”) advises that the Company has now closed its previously announced non-brokered part-and-parcel private placement (the “Private Placement”) of 14,147,521 units (each a “Unit”) at a price of CAD$0.35 per Unit, for gross proceeds of CAD$4,951,633. Each Unit consists 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 CAD$0.65 per common share.
The Company paid 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, on the same terms of the warrants issued to investors, equal to 8% of the number of Units subscribed for under the Private Placement.
All securities issued in respect of the Private Placement are subject to resale restrictions expiring on June 24, 2010.
The Company has notified the TSX Venture Exchange (the “Exchange”) of the closing of the Private Placement and expects to receive final approval to the Company’s Change of Business application previously announced on February 10, 2009, which involves the acquisition of an interest in the Lucky Shot Property. The Company has filed a Filing Statement on SEDAR which discloses the details of the acquisition and the Private Placement in connection with the acquisition. The Exchange has provided conditional approval to the Change of Business, subject to the closing of the Private Placement, such that final approval should be received imminently.
The proceeds of the Private Placement will be used to fund the initial option payment and work program to be conducted by the Company on the Lucky Shot Property and for general and administrative expenses.
In connection with the Change of Business, the Company will issue a total of 12,000,000 common shares to Full Metal Minerals Ltd. upon certain milestones being reached, which will be subject to escrow restrictions as more fully described in the Filing Statement. The initial share issuance is 2,000,000 common shares.
The Company’s Filing Statement and the Technical Report on the Lucky Shot Property can be viewed 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.