AngloGold Ashanti Limited increases its interest in Sadiola from 38% up to 41%
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| Tuesday, December 29, 2009 |
AngloGold Ashanti Limited (“AngloGold Ashanti”) has closed a transaction with the International Finance Corporation (“IFC”) for the purchase of up to half of its stake in Société d’Exploitation des Mines d’or de Sadiola (“SEMOS”), which owns the Sadiola Gold Mine. IAMGOLD Corporation (“IAMGOLD”) has similarly acquired half of the IFC’s interest on the same material terms and conditions. The transaction follows IAMGOLD’s announcement on 2 November whereby it offered to acquire the IFC’s entire interest in SEMOS and is as a result of both parties following the pre-emptive rights process in accordance with the SEMOS shareholders agreement.
The consideration for each 3% stake is US$6 million upfront followed by contingent payments during 2010, 2011 and 2012 for:
- US$0.25 million for each year in which the average gold price exceeds US$900/oz or US$0.5 million for each year in which the average gold price exceeds US$1000/oz and
- US$0.5 million upon approval by the board of directors of SEMOS and the Republic of Mali to proceed with the development of the Sadiola Deep Sulphide Project or a public announcement by AngloGold Ashanti to proceed.
In addition, AngloGold Ashanti and IAMGOLD have extended an offer to the Republic of Mali to take up its proportionate entitlement of 19.15% of the 6% sale interest, by acquiring an equal 0.574% interest in SEMOS from each of them on terms proportionately identical to those set out above, on or before 31 March 2010.
Legal Advisors to AngloGold Ashanti: Tabacks
JSE Sponsor: UBS
| Contacts |
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| Joanne Jones (Media) |
+27 (0) 11 637 6813 |
+27 (0) 82 896 0306 |
jjones@anglogoldashanti.com |
| Sicelo Ntuli (Investor Relations) |
+27 (0) 11 637 6339 |
+27 (0) 71 608 0991 |
sntuli@anglogoldashanti.com |
| Stewart Bailey (Investor Relations) |
+1 212 836 4303 |
+1 646 338 4337 |
sbailey@anglogoldashanti.com |
Disclaimer
Certain statements made in this communication, including, without limitation, those concerning AngloGold Ashanti’s strategy to reduce its gold hedging position including the extent and effects of the reduction, the economic outlook for the gold mining industry, expectations regarding gold prices, production, cash costs and other operating results, growth prospects and outlook of AngloGold Ashanti’s operations, individually or in the aggregate, including the completion and commencement of commercial operations of certain of AngloGold Ashanti’s exploration and production projects and completion of acquisitions and dispositions, AngloGold Ashanti’s liquidity and capital resources, and expenditure and the outcome and consequences of any pending litigation proceedings, contain certain forward-looking statements regarding AngloGold Ashanti’s operations, economic performance and financial condition. Although AngloGold Ashanti believes that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct. Accordingly, results could differ materially from those set out in the forward-looking statements as a result of, among other factors, changes in economic and market conditions, success of business and operating initiatives, changes in the regulatory environment and other government actions, fluctuations in gold prices and exchange rates, and business and operational risk management. For a discussion of such factors, refer to AngloGold Ashanti's annual report for the year ended 31 December 2008, which was distributed to shareholders on 27 March 2009 and the company’s annual report on Form 20-F, filed with the Securities and Exchange Commission in the United States on May 5, 2009 as amended on May 6, 2009. AngloGold Ashanti undertakes no obligation to update publicly or release any revisions to these forward-looking statements to reflect events or circumstances after today’s date or to reflect the occurrence of unanticipated events. All subsequent written or oral forward-looking statements attributable to AngloGold Ashanti or any person acting on its behalf are qualified by the cautionary statements herein.
AngloGold Ashanti posts information that is important to investors on the main page of its website at www.anglogoldashanti.com and under the “Investors” tab on the main page. This information is updated regularly. Investors should visit this website to obtain important information about AngloGold Ashanti. | |
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