UPDATE 2-Harmony raises $100 mln in share issue to cut debt

* Raised cash through share issue

* Repaid R1.25 bln of 2 bln loan, rest due in Dec 09

* Reaffirms commitment to capex plans

(Adds analyst, background)

By Muchena Zigomo

JOHANNESBURG, Dec 22 (Reuters) - South African gold miner Harmony Gold (HARJ.J) has raised 979 million rand ($100.1 million) in a share issue to boost its balance sheet and said on Monday it was sticking to its capital expenditure plans.

The company also said it had repaid 1.25 billion rand of a 2 billion rand Nedbank loan repayable by December 2008, which represents a large chunk of its net debt, and rescheduled the remaining 750 million rand to fall due in December 2009.

Harmony's move comes as a number of other mining firms have decided to cut spending in order to survive a deepening global economic downturn that will curb profits and cash flow.

"What worries me is whether or not (Harmony) will be able to sustain their spending plans because everybody else is cutting back on capital expenditure," Afrifocus Securities analyst Mark Madeyeski said.

Harmony has been working to cut its debt burden, which it said in October stood at 2.4 billion rand, as it eyes acquisitions.

The company's shares traded 3.6 percent firmer at 87.50 rand by 1001 GMT, slightly lagging a buoyant Johannesburg gold mining index .JGLDX, which gained 4.3 percent.

Harmony said it issued shares equivalent to 2.6 percent of its issued share capital between Nov. 25 and Dec. 19 at an average price of 93.20 rand, which was slightly higher than the weighted average share price over the same period.

The issue would cost about 15 million rand. Harmony said in a statement the funds raised would mainly be used to reduce debt.

Harmony said it had reviewed its capital spending plans and was sticking to them.

Miner Anglo American Plc (AAL.L) said last week it would slash capital spending next year by more than half to $4.5 billion from the previous level of about $10 billion by delaying expansion projects ranging from platinum in South Africa to iron ore in Brazil.

Anglo's South African unit Anglo Platinum (AMSJ.J) was also expected to undertake more aggressive cutting, downsizing operations and continuing to under-produce.