AngloGold Ashanti signs agreement with Philippines
AngloGold Ashanti signs agreement with Philippines explorer Red 5
AngloGold Ashanti Limited
(formerly AngloGold 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 signs agreement with Philippines explorer Red 5
AngloGold Ashanti Limited has agreed to take a share placement in Red 5
Limited and has formed a strategic alliance with the explorer in relation to its
Philippines tenements.
AngloGold Ashanti will subscribe for 31 million Red 5 shares at 17.7 cents
per share to acquire a 12.3% stake in the expanded issued capital of Red 5. Red
5 will use the A$5.5 million raised by the placement to fund exploration along
strike from current mineral resources at the Siana Project, and to test nearby
porphyry gold-copper targets in the Surigao region of the Republic of the
Philippines.
The Head of AngloGold Ashanti Australia, Mr Peter Rowe, will join the Red 5
board.
The companies have also formed a strategic alliance in which Red 5 has
granted AngloGold Ashanti Australia an exclusive option to enter joint ventures
and earn direct equity in specific projects in the Surigao region, within the
Area of Influence. As part of the strategic alliance, AngloGold Ashanti
Australia has agreed to provide technical services to Red 5 on request.
If AngloGold Ashanti Australia decides to exercise its right to enter a joint
venture, it will be required to spend a minimum of US$1.75 million in the first
year, a further US$4 million to acquire 65% of Red 5`s equity in the joint
venture and a further US$5 million to acquire an additional 10%.
Whilst Red 5`s Siana Project has been excluded from the Area of Influence,
Red 5 will have access to AngloGold Ashanti Australia`s technical support and
has an obligation to offer AngloGold Ashanti Australia the opportunity to
provide debt funding as and when required.
The placement will be made on 22 October.
Perth, Australia
11 October 2004
AngloGold Ashanti Limited sponsor : UBS
Date: 11/10/2004 12:01:18 PM
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