AngloGold Ashanti Limited \ (Incorporated in the Republic of South Africa)
(Reg. No.1944/017354/06) \ ISIN Number: ZAE000043485 \ NYSE symbol: AU \ JSE
share code: ANG
Corporate Affairs Department: \ 3rd Floor \ 76 Jeppe Street \ Johannesburg 2001 \ S outh Africa
Tel +27 (0)11 637 6317 \ Fax +27 (0)11 637 6399/6400 \ www.AngloGoldAshanti.com
16 July 2009
AngloGold Ashanti Limited signs agreements with Randgold Resources Limited in
relation to its proposed acquisition of Moto Goldmines Limited
AngloGold Ashanti Limited ("AngloGold Ashanti" or "the Company") is pleased to
announce that it has entered into a series of agreements with Randgold
Resources Limited ("Randgold Resources"), which, upon the closing of Randgold
Resources' proposed acquisition of 100% of the issued share capital and
outstanding options and warrants of Moto Goldmines Limited ("Moto"), will
result in AngloGold Ashanti acquiring an indirect 50% interest in Moto for
approximately US$244 million in cash.
At the same time, AngloGold Ashanti and Randgold Resources will form a joint
venture for the development and operation of the Moto gold project, located in
the Democratic Republic of the Congo ("DRC"). Moto owns 70% of the project
which is at an advanced exploration stage with a JORC compliant Mineral
Resource of some 22.5 million ounces of gold as published on 21 January 2009.
The other 30% joint venture interest in the project is owned by Offices des
Mines d'Or de Kilo-Moto ("Okimo"), a DRC state-owned company. Under the terms
of the proposed joint venture agreement, Randgold Resources will be appointed
operator of the project.
Shareholders are referred to a separate announcement made by Randgold Resources
today describing its approach to the Board of Directors of Moto in relation to
its proposed acquisition.
AngloGold Ashanti's agreement to acquire its indirect joint venture interest in
Moto, as described above, is subject to the completion of the acquisition of
Moto by Randgold Resources and, as is customary for transactions of this
nature, an application has been made by AngloGold Ashanti to, and is currently
under consideration by, the South African Reserve Bank.
"We're pleased to build on the successful partnership we've enjoyed with
Randgold Resources over the past nine years at Morila,'' AngloGold Ashanti
Chief Executive Officer Mark Cutifani said. "Our agreement to acquire for cash
a 50% joint venture interest on closing enables Randgold Resources to present
terms to Moto which make its offer clearly superior to those already offered by
Red Back Mining Inc. in its offer for Moto.''
"This partnership will benefit all stakeholders, especially the people of the
DRC, by successfully developing one of the world's most exciting gold
ore-bodies in a joint effort that shares risk and rewards," Cutifani said.
"This is a further step in our Africa growth strategy and complements our
existing greenfields exploration activities in the DRC by taking a larger
foothold in one of the world's most prospective goldfields via the Moto gold
project, one of Africa's largest undeveloped mineral resources.''
There can be no assurance, at this stage, that Randgold Resources will complete
its proposed acquisition of Moto. AngloGold Ashanti will make a further
announcement in due course.
Financial Advisor to AngloGold Ashanti
Legal Advisors to AngloGold Ashanti
Fasken Martineau DuMoulin LLP
Shearman & Sterling LLP
Tel: Mobile: E-mail:
Alan Fine (Media) +27 (0) 11 637 + 27 (0) 83 325 afine@anglogoldAshanti.com
Joanne Jones +27 (0) 11 637 +27 (0) 82 896 jjones@AngloGoldAshanti.com
(Media) 6813 0306
Stewart Bailey +1 212 836 4303 +1 646 338 4337 email@example.com
Certain statements made in this communication, including, without limitation,
those concerning the benefits of the partnership for all stakeholders and the
prospects of the Moto Gold Project, 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, fluctuations in gold prices and
exchange rates, and business and operational risk management. For a discussion
of such factors, refer to AngloGold Ashanti's annual report for the year ended
31 December 2008, which was distributed to shareholders on 27 March 2009 and
the company's annual report on Form 20-F, filed with the Securities and
Exchange Commission in the United States on May 5, 2009 as amended on May 6,
2009. 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.anglgoldashanti.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.