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ANG
ANANO
ANG - Anglogold Ashanti announces finalisation of the TAU Lekoa Sale
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")
TAU LEKOA - FINALISATION OF SALE
AngloGold Ashanti is pleased to announce that the Department of Mineral
Resources has transferred the mining rights for its Tau Lekoa Mine to
Buffelsfontein Gold Mines Limited, a wholly-owned subsidiary of Simmer & Jack
Mines Limited (Simmers). Full ownership of Tau Lekoa and the adjacent
properties of Weltevreden and Goedgenoeg will pass to Simmers on 1 August 2010.
AngloGold Ashanti entered into an agreement with Simmers in February 2009 for
the sale of Tau Lekoa and the adjacent properties of Weltevreden and Goedgenoeg
for a total purchase consideration of:
- R600 million (payable at completion of the transaction and adjusted as set
out below); and
- a royalty determined at 3% of the net revenue (gross revenue less state
royalties) generated by the Tau Lekoa mine and any operations developed at
Weltevreden and Goedgenoeg. The royalty will be payable quarterly, from 1
January 2010, until the total production from Tau Lekoa, Weltevreden or
Goedgenoeg upon which the royalty is paid is equal to 1.5 million ounces and
provided that the average quarterly rand price of gold is equal to or exceeds
R180,000/kg (in 1 January 2010 terms).
Full details of the agreement were published on 18 February 2009 and can be
accessed on www.anglogoldashanti.com/Additional/Press/2009/Tau+Lekoa+Sale.htm
In terms of the agreement, Simmers will settle the R600 million purchase
consideration payable at completion as follows:
- R450 million in cash; and
- the balance in cash or shares in Simmers. This remaining R150 million is
subject to an offset adjustment (up to a maximum of R150 million) based on the
free cash flow generated by Tau Lekoa between 1 January 2009 and 31 July 2010
and including an offset for the royalty payable from 1 January 2010 to 30 June
2010. This balancing amount will be determined based upon a final audit of the
July 2010 production figures.
From 1 August 2010, Simmers will treat all ore produced from Tau Lekoa,
Weltevreden or Goedgenoeg at its own processing facilities. As a result
AngloGold Ashanti will have increased processing capacity available allowing for
the processing of additional material from its other Vaal River mines and
surface sources. This is expected to produce an estimated 7,000oz of gold for
the remainder of this year.
Tau Lekoa produced 124,000oz of gold (equivalent to 2.7% of group production)
in 2009.
ENDS
21 July 2010
JSE Sponsor - UB
Contacts
Contacts
Tel: E-mail:
Alan Fine (Media) +27 11 637 6383 afine@AngloGoldAshanti.com
Joanne Jones (Media) +27 11 637 6813 jjones@AngloGoldAshanti.com
Sicelo Ntuli (Investors) +27 11 637-6339 sntuli@anglogoldashanti.com
Stewart Bailey(Investor) +1 2128364303 sbailey@anglogoldashanti.com
or +27 82 330 9628
Certain statements made in this communication, including, without limitation,
those concerning AngloGold Ashanti`s strategy to reduce its gold hedging
position including the extent and effects of the reduction, the economic outlook
for the gold mining industry, expectations regarding gold prices, production,
cash costs and other operating results, growth prospects and outlook of
AngloGold Ashanti`s operations, individually or in the aggregate, including the
completion and commencement of commercial operations of certain of AngloGold
Ashanti`s exploration and production projects, the resumption of production at
AngloGold Ashanti`s mines in Ghana, the completion of announced mergers and
acquisitions transactions, AngloGold Ashanti`s liquidity and capital resources,
and expenditure and the outcome and consequences of any litigation proceedings
or environmental issues, contain certain forward-looking statements regarding
AngloGold Ashanti`s operations, economic performance and financial condition.
Although AngloGold Ashanti believes that the expectations reflected in such
forward-looking statements are reasonable, no assurance can be given that such
expectations will prove to have been correct. Accordingly, results could differ
materially from those set out in the forward-looking statements as a result of,
among other factors, changes in economic and market conditions, success of
business and operating initiatives, changes in the regulatory environment and
other government actions including environmental approvals and actions,
fluctuations in gold prices and exchange rates, and business and operational
risk management. For a discussion of certain of these factors, refer to
AngloGold Ashanti`s annual report for the year ended 31 December 2009, which was
distributed to shareholders on 30 March 2010. The company`s annual report on
Form 20-F, was filed with the Securities and Exchange Commission in the United
States on April 19, 2010 and as amended on May 18, 2010. AngloGold Ashanti
undertakes no obligation to update publicly or release any revisions to these
forward-looking statements to reflect events or circumstances after today`s date
or to reflect the occurrence of unanticipated events. All subsequent written or
oral forward-looking statements attributable to AngloGold Ashanti or any person
acting on its behalf are qualified by the cautionary statements herein.
AngloGold Ashanti posts information that is important to investors on the main
page of its website at www.anglogoldashanti.com and under the "Investors" tab on
the main page. This information is updated regularly. Investors should visit
this website to obtain important information about AngloGold Ashanti.
Date: 21/07/2010 07:34:01 Produced by the JSE SENS Department.
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