AngloGold Ashanti and Oxiana form exploration alliance
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 and Oxiana form exploration alliance
AngloGold Ashanti Ltd has taken another step forward in its new frontiers
growth strategy, today announcing an exploration alliance with Oxiana Ltd to
explore for gold in Laos.
As part of this growth strategy the company`s business development team has
been assessing opportunities in prospective, but under-explored, new frontier
regions.
The agreement with Oxiana follows the investment in Trans-Siberian Gold in
Russia and a strategic alliance in the Philippines with Red 5 Ltd.
Laos is highly prospective for both gold and copper, but is under-explored.
This initiative aims to further unlock Laos` gold potential by combining
AngloGold Ashanti`s technical expertise with Oxiana`s in-depth country knowledge
and operating experience.
The alliance will explore for gold throughout the country, excluding all
areas currently held or under application by Oxiana.
Key terms of the Exploration Alliance Agreement are summarized as follows:
- The generative phase will be funded jointly by AngloGold Ashanti and
Oxiana. Oxiana will be the initial Manager with both Oxiana and AngloGold
Ashanti personnel seconded to the Alliance.
- Projects generated will be owned 50% by AngloGold Ashanti and 50% by
Oxiana.
- AngloGold Ashanti has an option to earn an additional 10% equity in any
project generated by either sole funding the first $US10 million of expenditure
where a project is still early stage (pre-drilling) or sole funding through to
completion of a bankable feasibility study (BFS) where a significant drill
intersection has already been made.
- Oxiana is free to explore Laos for copper and any copper projects
generated in the course of exploration by the AngloGold Ashanti-Oxiana alliance
will revert 100% to Oxiana.
- Oxiana may sole fund gold projects not of interest to AngloGold Ashanti,
however, AngloGold Ashanti retains the right to claw back up to 60% in any
projects by proving up a 2 million ounce gold resource (JORC compliant) within
24 months and then sole funding the project to completion of a BFS. Projects of
less than 2 million ounces will revert 100% to Oxiana.
ends
Perth, Australia
13 December 2004
AngloGold Ashanti Limited sponsor : UBS
Date: 13/12/2004 08:30:05 AM
Produced by the JSE SENS Department
Profile Group (Pty) Ltd. has taken care in preparing all information on this website, but does not accept any liability for errors or out-of-date information.
