Anglogold Ashanti signs agreement with China explo
ANG
ANANO
Anglogold Ashanti signs agreement with China explorer Dynasty Gold
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 SIGNS AGREEMENT WITH CHINA EXPLORER DYNASTY GOLD
AngloGold Ashanti Limited announced today an agreement to acquire an
effective 8.7% stake in Dynasty Gold Corporation, a Vancouver-based exploration
company with projects in China, through a $2m private placement in shares and
warrants.
Dynasty Gold holds 70% of three existing projects in northwest China: Red
Valley in Qinghai, Wild Horse in Gansu and Hatu in Xinjiang. The proceeds of
the AngloGold Ashanti investment will be used to fund further exploration of the
Red Valley and Wild Horse projects, both located in the prospective Qilian
metallogenic belt.
AngloGold Ashanti will acquire its stake through the purchase of 5.75m
Dynasty units at a price of C$0.60. Each unit will consist of one common share
and one-half common share purchase warrant, exercisable at a price of C$0.60 for
two years. In addition to this equity investment, the two companies have agreed
to form a broader partnership, allowing AngloGold Ashanti the right to enter
into joint ventures at both the Red Valley and Wild Horse projects, and, by
investing a total of $5m over three years, earn 55% in these projects.
Commenting on the transaction, Executive Officer: Business Development,
Richard Duffy said, `We are delighted to form this partnership with Dynasty Gold
Corporation, which marks the next step in building our exploration presence in
the prospective Qilian belt in China."
ends
27 February 2006
Sponsor : UBS
Queries:
South Africa Tel: E-mail:
Eric Roth +27 (0) 11 637 6211 eroth@AngloGoldAshanti.com
Date: 27/02/2006 09:44:35 AM Produced by the JSE SENS Department
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