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Copy of letter despatch to HNG Shareholders by Harmony Gold

Document date:  Mon 08 Jan 2001
Published:  Mon 08 Jan 2001 00:00:00
Document No:  171980
Document part:  C
Market Flag:  N


HOMEX - Melbourne                                                     

Harmony Cold Mining Company Limited today announced the intention of
its wholly-owned subsidiary, Harmony Gold (Australia) Pty Limited
("Harmony"), to make a cash offer of A$0,265 per share for all the
issued share capital of New Hampton Goldfields Limited ("New Hampton")
on issue at 9am on 19 December 2000.

The offer values New Hampton's share at approximately A$54 million in
total, and represents a premium of 32.5% to the share price of A$0.20
as at the close of trading on 18 December. Harmony also intends to
extend its Offer to incorporate certain of the listed and unlisted
options in New Hampton, as detailed in the schedule attached to this

Harmony has entered into an agreement to buy from a subsidiary of
Normandy Mining Limited, approximately 19.99% of New Hampton's shares
at A$0.265 per share.

Harmony's offer is subject to certain conditions, which are
summarised in the schedule attached to this announcement. These
conditions include Harmony acquiring a relevant interest in at least
50.1% of New Hampton's shares before the end of the offer period.
Harmony intends to serve its Bidder's Statement for New Hampton

Harmony Gold Mining Company Limited is one of the world's leading
gold producers with interests spanning South Africa, North America
and Australia, and annual gold production in excess of 2.7 million

Commenting on the Offer, Harmony Chief Executive, Bernard Swanepoel

"Harmony views its offer for New Hampton as an opportunity to
commence gold mining operations in Australia, particularly in the
prospective and strategic Kalgoorlie region."

New Hampton is currently Australia's ninth largest gold producer,
operating the Jubilee and Big Bell gold mines in Western Australia and
holding an exploration portfolio in the Kalgoorlie Goldfields. In the
year to 30 June 2000, New Hampton produced 185,548 ounces of gold of
which Jubilee contributed approximately 90,000 ounces and Big Bell,
from its acquisition in December 1999, contributed approximately
95,000 ounces.

Harmony has appointed Salomon Smith Barney as its financial adviser.

For further information please contact:

Peter J Bacchus                         Peter McKenna 
DIRECTOR                                DIRECTOR 
Salomon Smith Barney                    Harmony Gold Mining 
Phone: + 61 2 8225 4644 / 0410 679 736  Phone: + 27 11 412 1450

Paula Hannaford 
Gavin Anderson & Company 
Phone: + 61 2 9552 4499 / 0413 940 180



A$0.265 per New Hampton Share payable in cash.


1. Acquiring a relevant interest in at least 50.1% of all New Hampton 

2. FIRB approval.

3. South African Reserve Board approval.

4. No material adverse change occurring in relation to New Hampton 
from the date of this announcement.

5. None of the events referred to in section 652C(1) and (2) of the 
Corporations Law occurring from the date of this announcement in 
relation to New Hampton.

6. The takeover offer does not trigger any change of control 
provisions entitling a third party to acquire a material asset of New 


Harmony also intents to extend its offer to incorporate a cash offer:

(a) of A$0.035 per option for all of the listed options of New 
Hampton; and
(b) of A$0.265 less the options exercise price per options for all of 
the unlisted employee and executive options of New Hampton with an 
exercise price less than A$0.265.