Free State Sale: Purchase Price Revision Between A
Jv Becomes Effective
AngloGold Limited
(Incorporated in the Republic of South Africa)
(Registration Number: 1944/017354/06)
ISIN Number: ZAE000014601
JSE Share Code: ANG
NEWS RELEASE
CORPORATE AFFAIRS DEPARTMENT
16th FLOOR, 11 DIAGONAL STREET
JOHANNESBURG 2001
TELEPHONE: (+27 11) 637-6385
FAX: (+27 11) 637-6399/6400
SKB/CAD/AGO296.02
1 February 2002
FREE STATE SALE: PURCHASE PRICE REVISION BETWEEN ANGLOGOLD AND ARM/HARMONY
JV BECOMES EFFECTIVE
When AngloGold announced the sale of its Free State assets to ARM and
Harmony (the Freegold Joint Venture) on 21 November 2001, it was stated that
this was subject to the transaction being recognised by the South African
Revenue Services (SARS) as a rationalisation scheme in terms of Section 39
of the Taxation Laws Amendment Act (Act 20 of 1994). With such recognition,
AngloGold would not be required to pay recoupment tax on the proceeds of the
sale.
On 7 January 2002, the Freegold Joint Venture (JV) announced that it had
reached an agreement with AngloGold that should the SARS ruling not be
obtained before 31 January, the JV would increase the price it was paying
for the assets by an amount equivalent to any liability for tax payable by
AngloGold.
To date, AngloGold has not been informed by SARS that the transaction would
qualify as a scheme of rationalisation. The revised agreement entered into
early January therefore becomes effective. This means that the purchase
price will be increased so that the after-tax amount payable to AngloGold
will be R2.2billion.
The tax payable will depend on AngloGold's overall tax position in the
company's former lease areas in the Free State. The amount will also depend
on what proportion of the purchase price the
Department of Minerals and Energy judges to be redeemable assets for tax
purposes.
AngloGold expects that it will be required to make the tax payment when the
sale is completed on 31 March 2003, and to recoup that amount from the JV by
that date.
ends
www.anglogold.com
Queries:
Steve Lenahan
+2711 637 6248 (tel)
+2711 637 6107 (fax)
+27 83 308 2200 (mobile)
slenahan@anglogold.com
Shelagh Blackman
+2711 637-6379 (tel)
+2711 637-6399 (fax)
+27 83 308 2471 (mobile)
sblackman@anglogold.com
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