FILE PHOTO: Mine workers open the doors to the pithead at the Harmony Gold mine in Carletonville
JOHANNESBURG - Harmony Gold shares fell more than 10percent in early trade yesterday after the gold miner announced that it had raised R1.05billion after issuing just over 55million new shares.

The new shares, issued at R19.12 per share, represent about 15percent of the company's issued share capital.

The issue price of the placing represented a discount of 11.7percent to the closing share price on Tuesday, Harmony said.

Harmony, which operates in South Africa and Papua New Guinea, on Tuesday announced that it would embark on the share sale to raise up to R1.26bn. The placing was conducted through an accelerated book-building process.

The company said the net proceeds of the placing would be used to pay down part of the outstanding $150million (R1.9bn) bridge loan raised for the acquisition of Moab Khotsong gold mine, which Harmony bought from AngloGold Ashanti earlier this year.

The shares closed 8.59percent lower on the JSE yesterday at R19.80.

- BUSINESS REPORT