Anglogold Ashanti Secures 100% Ownership of Serra Grande
(firmenpresse) - JOHANNESBURG, SOUTH AFRICA -- (Marketwire) -- 05/29/12 -- AngloGold Ashanti (NYSE: AU),
which currently holds, through its subsidiaries, a 50% interest in the
Serra Grande (Crixás) mine in Brazil, has agreed to acquire the remaining
50% stake in the mine from Kinross Gold Corporation ("Kinross") for US$220
million in cash ("the transaction"). The transaction will be funded from
existing cash reserves and debt facilities and remains subject to various
conditions, detailed below.
In 2011, the Serra Grande mine produced 134,000oz of gold at a cash cost of
US$767/oz. The Serra Grande operation comprises three underground mines,
namely Mina III, Mina Nova and Mina Palmeiras, and one open pit mine on the
outcrop of the Mina III mineralised zone (between surface and level 50) as
well as a single dedicated processing plant. To date the Serra Grande mine,
which is operated by AngloGold Ashanti, has produced 3.4Moz of gold.
The acquisition, which will entitle AngloGold Ashanti to 100% production
from Serra Grande, is expected to increase AngloGold Ashanti's annual
attributable production from Brazil to well in excess of 500,000oz and the
contribution from the Americas region as whole to more than 1Moz.
The transaction is expected to provide a number of benefits to AngloGold
Ashanti, including:
Enhancing AngloGold Ashanti's production, Ore Reserve and Mineral
Resource profiles by approximately 70,000oz a year, 375,000oz and 1.186Moz
respectively;
Making a positive contribution toward AngloGold Ashanti's near term
gold production profile in Brazil, which the company views as a key
jurisdiction in its portfolio. Annual production from AngloGold Ashanti's
Brazilian operations is expected to increase from 428,000oz in 2011 to
between 540,000oz to 550,000oz whilst annual gold production in the
Americas region is projected to increase to more than 1Moz per annum;
Securing 100% ownership of the Serra Grande mine in AngloGold Ashanti's
hands with no concomitant increase in management costs; and
Providing AngloGold Ashanti with full exposure to further exploration
potential at the Serra Grande mine, where more than 1.0Moz of Mineral
Resources have been added over the past four years. AngloGold Ashanti
anticipates that these additional resources and the exploration potential
that exists at the site create the opportunity to further extend the life
of Serra Grande.
"This deal further simplifies our portfolio and gives us greater exposure
to Brazil, where we've had significant success in growing our production as
well as our reserve and resource base," Mark Cutifani, AngloGold Ashanti's
Chief Executive Officer, said. "We see long-term, lower risk, potential
from Serra Grande, which is a key component of our strategy to grow the
contribution from the Americas."
Under the terms of the transaction, AngloGold Ashanti's wholly owned
subsidiary, AngloGold Ashanti Brasil Mineração Ltda. will acquire Kinross'
50% interest in Mineração Serra Grande S.A. ("MSG"), the principal asset of
which is the Serra Grande mine, from Newinco Comércio e Partcipações Ltda
("Newinco") a subsidiary of Kinross which holds its 50% interest in MSG.
Newinco has provided customary warranties and indemnities in respect of its
50% share of certain tax claims against MSG. Kinross has provided a parent
guarantee in respect of the obligations of Newinco under the transaction
agreements.
The parties are required to file a notification of the transaction with the
Brazilian anti-trust authorities. The transaction is also subject to the
fulfilment of various conditions, including:
the unconditional approval of the South African Reserve Bank of the
transaction, in accordance with the Exchange Control Regulations of the
Republic of South Africa; and
no material adverse event (as defined in the transaction agreement)
having occurred.
The transaction is expected to be completed during the second quarter of
2012.
Johannesburg
29 May 2012
Primary Legal Advisers: Slaughter and May
Sponsor: UBS
Contacts
Alan Fine
(Media)
+27 (0) 11 637-6383
+27 (0) 83 250 0757
Chris Nthite
(Media)
+27 (0) 11 637 6388
+27 (0) 83 301 2481
Mike Bedford
(Investors)
+27 (0) 11 637 6273
+27 (0) 82 3748820
Stewart Bailey
(Investors)
+1 212 836 4303
+1 646 338 4337
Themen in dieser Pressemitteilung:
Unternehmensinformation / Kurzprofil:
Datum: 29.05.2012 - 06:06 Uhr
Sprache: Deutsch
News-ID 150498
Anzahl Zeichen: 0
contact information:
Town:
JOHANNESBURG, SOUTH AFRICA
Kategorie:
Commercial & Investment Banking
Diese Pressemitteilung wurde bisher 228 mal aufgerufen.
Die Pressemitteilung mit dem Titel:
"Anglogold Ashanti Secures 100% Ownership of Serra Grande"
steht unter der journalistisch-redaktionellen Verantwortung von
AngloGold Ashanti (Nachricht senden)
Beachten Sie bitte die weiteren Informationen zum Haftungsauschluß (gemäß TMG - TeleMedianGesetz) und dem Datenschutz (gemäß der DSGVO).
