ANGLOGOLD ASHANTI AND TRANS-SIBERIAN GOLD AGREE TO EXTEND DEADLINE
ANGLOGOLD ASHANTI LIMITED
(formerly AngloGold Limited
(Registration number 1944/017354/06)
(Incorporated in the Republic of South Africa)
(`AngloGold` or `the Company`)
ISIN: ZAE000043485 JSE Share code: ANG
ANGLOGOLD ASHANTI AND TRANS-SIBERIAN GOLD AGREE TO EXTEND DEADLINE
AngloGold Ashanti Limited (`AngloGold Ashanti`) and Trans-Siberian Gold plc
(`TSG`) have agreed to extend the deadline for AngloGold Ashanti`s second
subscription of new ordinary shares in TSG (`the second subscription`) pursuant
to the subscription agreement signed in June 2004 (`the subscription agreement`)
from 31 December 2004 to 15 April 2005. The extension has been agreed because
the condition in the subscription agreement relating to the financing of TSG`s
Asacha project, located in Kamchatka, Far East Russia, will not be satisfied by
31 December 2004. AngloGold Ashanti currently has a 17.5% equity interest in
TSG that would increase to 29.9% with the second subscription.
TSG has also agreed with AngloGold Ashanti that the second subscription is
now also conditional on a revised implementation plan, which will include
clearly defined capital estimates and project schedules, as well as a financing
plan for the Asacha project, being unanimously agreed by the TSG Board, as well
as any regulatory filings or amendments to regulatory filings, which are
necessary in the Russian Federation for this revised implementation plan for the
Asacha project, having been made. The second subscription will however not be
conditional upon TSG entering into a binding agreement to finance the
development of the Asacha project. Other than these changes in relation to the
second subscription, the subscription agreement shall continue in full force and
effect.
TSG has announced that it is undertaking a review of the capital cost
estimates of the Asacha project. TSG has further announced that recent increases
in the cost of fuel, steel and labour in Russia, and higher international
freight costs, combined with the strengthening of the rouble, especially against
the US dollar, are expected to lead to a material rise in the capital cost of
the project, above the estimate of the bankable feasibility study completed in
February 2004.
Richard Duffy, AngloGold Ashanti`s Executive Officer responsible for Business
Development and a non-executive director of TSG, comments: `Whilst we are
concerned that the capital costs of the Asacha project have increased, and there
may be a delay in the implementation of the project, we remain committed to our
investment in TSG. We will continue to make resources available to TSG through
our Technical Consultancy Agreement and are confident that TSG will determine a
satisfactory way forward with Asacha.`
Johannesburg
23 December 2004
JSE Sponsor : UBS
Date: 23/12/2004 02:40:21 PM
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