| Fri 26 Jun 2009, 8:07 | | ANG - AngloGold Ashanti - Anglogold Ashanti Announces Completion Of The Sale |
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ANG
ANANO
ANG - AngloGold Ashanti - Anglogold Ashanti Announces Completion Of The Sale
Of Interest In Boddington
AngloGold Ashanti Limited
Incorporated in the Republic of South Africa
Registration Number: 1944/017354/06)
ISIN Number:ZAE000043485
JSE Share Code: ANG
("AngloGold Ashanti/Company")
ANGLOGOLD ASHANTI ANNOUNCES COMPLETION OF THE SALE OF INTEREST IN BODDINGTON
AngloGold Ashanti Ltd. ("AngloGold Ashanti") is pleased to announce that
it has today completed the sale of its indirect 33.33% joint venture interest
in the Boddington gold mine in Western Australia, to Newmont Mining
Corporation ("Newmont").
On 27 January 2009 AngloGold Ashanti announced that the transaction
consideration consists of three components:
- US$750 million payable in cash upon the fulfillment of all conditions
precedent to the transaction ("Completion");
- US$240 million that will be settled, subject to Newmont`s election on 1
December 2009, either in cash payable on 31 December 2009, or Newmont shares
to be issued on or prior to 10 December 2009, or a combination of cash
(payable on 31 December 2009) and Newmont shares (issued on or before 10
December 2009). Any Newmont shares issued to AngloGold Ashanti will be
subject to registration rights that will give AngloGold Ashanti the
flexibility to dispose of the shares in the market; and
- A royalty calculated as the product of, 50% of the amount by which the
average spot gold price in each quarter exceeds the cash costs of the
Boddington Gold Mine, as reported by Newmont, by US$600 per ounce and, one-
third of total gold production from the Boddington Gold mine in that quarter.
The royalty is payable in each quarter from and after the second quarter in
2010 that the above threshold is achieved and subject to an aggregate cap of
US$100 million in royalty payments.
As Completion has now been achieved, in accordance with the transaction
agreement AngloGold Ashanti has:
- received US$750 million in cash;
- been reimbursed all contributions made by it to the joint venture from 1
January 2009 amounting to approximately AUD225 million; and
- paid Newmont US$8 million in respect of its share of working capital as
at 1 January 2009, being the valuation date for the transaction.
End
Johannesburg
26 June 2009
JSE Sponsor : UBS
Contacts
Alan Fine (Media) Tel: +27 (0) 11 637 6383 Mobile: +27 (0) 83 250 0757
E-mail: afine@anglogoldashanti.com
Joanne Jones (Media) Tel: +27 (0) 11 637 6813 Mobile: +27 (0) 82 896 0306
E-mail: jjones@AngloGoldAshanti.com
Sicelo Ntuli (Investors) Tel: +27 (0) 11637 6339
Mobile: +27 (0) 71 608 0991 E-mail sntuli@anglogoldashanti.com
Stewart Bailey (Investors) Tel: +1 646 717 3978
E-mail: sbailey@anglogoldashanti.com
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.
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.anglgoldashanti.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.
Date: 26/06/2009 08:07:01 Produced by the JSE SENS Department.
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