| Wed 23 Aug 2006, 8:01 | | AngloGold Ashanti - Enters into agreement to sell |
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ANG
ANANO
AngloGold Ashanti - Enters into agreement to sell the Bibiani Mine
AngloGold Ashanti
(Registration number 1944/017354/06)
(Incorporated in the Republic of South Africa)
("AngloGold")
ISIN: ZAE000043485
JSE Share code: ANG
AngloGold Ashanti enters into agreement to sell the Bibiani Mine
AngloGold Ashanti has entered into an agreement with Central African Gold plc
(CAG) to sell its entire business undertaking related to the Bibiani mine and
Bibiani North prospecting permit to CAG for a cash consideration of US$40
million.
Bibiani is located in southwestern Ghana. For the six months ended 30 June
2006, Bibiani produced 24,000 ounces of gold at a total cash cost of US$329
per ounce. As at 31 December 2005, Bibiani had Ore Reserves of 100,000 ounces
and Mineral Resources of 900,000 ounces.
Pursuant to the sale, AngloGold Ashanti will transfer of all of its assets
related to Bibiani to CAG, including all of Bibiani"s employees, fixed mining
and non-mining assets, inventory, trade debtors and intellectual property as
well as the Bibiani mining lease and the Bibiani North prospecting licence,
and procure the cession and delegation of all contracts related to Bibiani to
CAG. CAG will assume all of AngloGold Ashanti"s rights and obligations under
this agreement in terms of the Reclamation Security Agreement related to
Bibiani (including all amounts deposited by AngloGold Ashanti in respect of
its obligations under this agreement upon closing of the sale). CAG will also
assume all outstanding liabilities related to Bibiani, including those related
to rehabilitation and employees but excluding certain claims previously
instituted against AngloGold Ashanti.
The sale is subject to and conditional upon both parties obtaining certain
regulatory consents, including written unconditional consent from the
Government of Ghana, the Minister of Mines and the Minerals Commission in
Ghana, as well as the South African Reserve Bank, and, in the case of CAG,
shareholder approval to both acquire Bibiani and to readmit the listing of its
shares on AIM, as well as CAG raising sufficient funds to allow it to
discharge its obligations in terms of its agreement with AngloGold Ashanti.
The cash consideration of $40m is made up of $36m for the Bibiani mine and $4m
for Bibiani North. The transaction with respect to Bibiani North is
conditional upon the granting of an extension of the Bibiani North prospecting
licence.
BMO Capital Markets acted as exclusive financial adviser to AngloGold
Ashanti in respect of the tender process culminating in the agreement with
CAG. Tabacks acted as legal adviser to AngloGold Ashanti.
Commenting on the transaction, Daniel Owiredu, AngloGold Ashanti"s Deputy
Chief Operating Officer in Accra said, `The sale of Bibiani will allow
AngloGold Ashanti to better focus its resources on its long-life, core assets,
including Obuasi and Iduapriem in Ghana, which remains a key production region
for the company". He went on to say, `It is our understanding that CAG will
continue to operate and develop Bibiani, including the Mineral Resources below
and adjacent to the existing open-pit and will as well undertake further
greenfields exploration in Bibiani North".
ends
23 August 2006
Sponsor: UBS
Date: 23/08/2006 08:01:06 AM Produced by the JSE SENS Department
