Wrap Text
ANG - Ashanti Limited - Anglogold Ashanti and B2GOLD amend Gramalote joint
venture agreement
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 AND B2GOLD AMEND GRAMALOTE JOINT VENTURE AGREEMENT
AngloGold Ashanti is pleased to announce that it has entered into an
agreement with B2Gold Corp. to amend the Gramalote Joint Venture Agreement.
Under the amended terms, AngloGold will retain its 51% interest in the Gramalote
Joint Venture and will become manager of the Gramalote Project in Colombia. The
Gramalote Project to date was managed by B2Gold, which will retain its 49%
interest in the Gramalote Joint Venture.
As part of the amendment, the companies have also agreed to a budget for the
Gramalote Project, for the second half of 2010 totalling US$9.18 million. This
budget will fund 10,000 metres of diamond drilling for the exploration of
additional targets on the property, infill drilling of the Gramalote deposit and
drilling for metallurgical test samples during this period to end 2010. In
addition, the budget will fund feasibility work including additional
environmental studies, metallurgical test work and engineering. The joint
venture will continue work on safety, health and environmental projects and will
continue to work with government and local communities on social programs.
AngloGold Ashanti and B2Gold plan to continue the exploration and feasibility
work into 2011 and 2012, with the goal of completing a final feasibility study
by the end of 2012. A further program and budget for exploration and
feasibility in 2011 is to be approved by the end of November, 2010. Each joint
venture partner will fund their share of expenditures pro rata to their
shareholding in the Gramalote Joint Venture.
AngloGold Ashanti and B2Gold have also agreed as follows regarding AngloGold
Ashanti`s rights and restrictions regarding its holding of securities of B2Gold:
- AngloGold Ashanti will continue to have a pre-emptive right to subscribe on
a pro rata basis for new offerings of shares or convertible securities of
B2Gold so as to maintain its percentage (currently 10.2%) holding of B2Gold`s
outstanding shares;
- AngloGold Ashanti has also agreed to reinstate certain standstill
provisions that limit its ability to acquire additional shares of B2Gold or
otherwise seek to acquire control of B2Gold alone or jointly with others; and
- In the event that AngloGold Ashanti wishes to sell its shares or warrants
in B2Gold for so long that AngloGold Ashanti holds an interest of equal to 5% or
more in B2Gold then AngloGold Ashanti will provide B2Gold with a first
opportunity to seek purchasers for such securities at prices specified by
AngloGold Ashanti, provided that if B2Gold is unable to sell such securities
following two such referrals/notices by AngloGold Ashanti, then AngloGold
Ashanti shall be free to sell such securities without any further restriction.
Commenting on the agreement, Ron Largent, AngloGold Ashanti`s Executive Vice
President for the America`s said "We are pleased to have reached agreement with
our partner B2Gold that will allow for further exploration, feasibility studies
and development of the Gramalote Project in Colombia. Colombia is an important
and significant component of AngloGold Ashanti`s resource base and future
production potential and we look forward to taking the Gramalote Project forward
in parallel with our other development projects and exploration initiatives in
this country"
ENDS
12 August 2010
JSE Sponsor - UBS
Contacts
Contacts
Tel: E-mail:
Alan Fine (Media) +27 11 637 6383 afine@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: 12/08/2010 09:37:08 Supplied by www.sharenet.co.za
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