Wrap Text
ANG - Anglogold Ashanti Completes Transaction To Acquire 15.9% Direct Interest
In B2gold And Increase B2gold`s Interest In Certain Colombian Properties
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")
ANGLOGOLD ASHANTI COMPLETES TRANSACTION TO ACQUIRE 15.9% DIRECT INTEREST IN
B2GOLD AND INCREASE B2GOLD`S INTEREST IN CERTAIN COLOMBIAN PROPERTIES
AngloGold Ashanti Limited ("AngloGold Ashanti") is pleased to announce that it
has completed the transaction with B2Gold Corp ("B2Gold") as previously
announced on 14 February 2008, under which:
- AngloGold Ashanti`s existing right to receive 20% of the voting shares of
B2Gold`s wholly-owned subsidiary, Andean Avasca Resources Inc. (AARI), has
been terminated;
- their existing Colombian joint venture arrangements have been amended; and
- B2Gold has acquired from AngloGold Ashanti additional interests in certain
mineral properties in Colombia that were not included in the original joint
venture agreement.
In exchange, B2Gold issued to AngloGold Ashanti`s nominee 25 million common
shares of B2Gold and 21.4 million share purchase warrants in B2Gold. The
exercise price of the warrants is Cdn$3.34 with respect to 11,000,000 warrants
and Cdn$4.25 with respect to the balance of the 10,400,000 warrants. Both
tranches of warrants have a three-year term. Based on the 157,277,500 currently
outstanding shares of B2Gold, AngloGold Ashanti will hold approximately 15.9% of
B2Gold`s issued and outstanding shares. AngloGold Ashanti`s fully diluted
interest in B2Gold upon the exercise of the 21.4 million warrants will be
approximately 26%.
AngloGold Ashanti`s purpose in effecting this transaction is to build on its
Colombian strategy of continuing to leverage its first-mover advantage through
developing its exploration projects, both in its own right and together with
partners like B2Gold. Through the transaction, it will acquire a direct interest
in B2Gold that will provide AngloGold Ashanti with exposure to B2Gold`s global
exploration programme, as well as participation in the underlying joint venture
interests in Colombia that AngloGold Ashanti will retain with B2Gold.
As a result of the transaction:
- B2Gold retains 100% of AARI and no longer has an obligation to list AARI
shares on a stock exchange;
- B2Gold acquires a 100% interest in the Miraflores property in Colombia from
AngloGold Ashanti and a 100% interest (subject to AngloGold Ashanti
retaining a 1% royalty) in the Mocoa property, a copper/molybdenum deposit
located in the south of Colombia;
- AngloGold Ashanti transfers to B2Gold a 2% interest in the Gramalote joint
venture and assigns to B2Gold other rights relating to Gramalote Limited,
including AngloGold Ashanti`s right to acquire an additional 24% interest
in Gramalote, so that B2Gold will be entitled to a 51% interest in the
Gramalote joint venture (AngloGold Ashanti retaining the remaining 49%);
- B2Gold takes over management of exploration of the Gramalote property and
is responsible for expenditures to complete a feasibility study of the
project by July 2010. The transfer of the 2% interest in the Gramalote
joint venture to B2Gold is conditional on B2Gold completing the feasibility
study by June 2010;
- AngloGold Ashanti transfers to the Gramalote joint venture its interests in
additional land positions, of approximately 1 500 square kilometers in
extent, located around the Gramalote deposit; and
- B2Gold`s obligations, in terms of the extent of drilling required for it to
earn in its interests in other Colombian properties under the Relationship,
Farm-out and Joint Venture Agreement dated 8 November 2006 with AngloGold
Ashanti and AARI, increase from 3 000 metres to 5 000 metres.
Commenting on the transaction, Richard Duffy, Executive Vice President: Business
Development for AngloGold Ashanti said: "The conclusion of this agreement with
B2Gold marks a further step in building a solid platform for AngloGold Ashanti`s
exploration activities in Colombia and maximising AngloGold Ashanti`s exposure
to the potential of this prospective country."
ENDS
JOHANNESBURG
16 MAY 2008
JSE SPONSOR: UBS
Queries
South Africa
Charles Carter (Investor Relations)
Tel: +27(0)11 637 6385
Mobile:+27(0)82 330 5373
E-mail: cecarter@AngloGoldAshanti.com
Himesh Persotam (Investor Relations)
Tel: +27(0)11 637 6647
Mobile: 27 (0) 82 339 3890
E-mail: hpersotam@AngloGoldAshanti.com
Alan Fine (Media)
Tel: +27(0)11 637 6383
Mobile: +27(0)83 350 0757
E-mail: affine@AngloGoldAshanti.com
Joanne Jones (Media)
Tel: +27(0)11 637 6813
Mobile:+27(0)82 896 0306
E-mail: jjones@AngloGoldAshanti.com
Certain statements made during this communication, including, without
limitation, those concerning the economic outlook for the gold mining industry,
expectations regarding gold prices, production, cash costs and other operating
results, growth prospects and the outlook of AngloGold Ashanti`s operations
including the completion and commencement of commercial operations of certain of
AngloGold Ashanti`s exploration and production projects, and its liquidity and
capital resources and expenditure, 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 2006, which was distributed to shareholders on 29 March 2007.
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.
In connection with the proposed merger transaction involving AngloGold
Ashanti and Golden Cycle Gold Corporation, AngloGold Ashanti has filed with the
SEC a registration statement on Form F-4 and GCGC will mail a proxy
statement/prospectus to its stockholders, and each will be filing other
documents regarding the proposed transaction with the U.S. Securities and
Exchange Commission ("SEC") as well. BEFORE MAKING ANY VOTING OR INVESTMENT
DECISION, INVESTORS ARE URGED TO READ THE PROXY STATEMENT/PROSPECTUS REGARDING
THE PROPOSED TRANSACTION AND ANY OTHER RELEVANT DOCUMENTS CAREFULLY WHEN THEY
BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE
PROPOSED TRANSACTION. The final proxy statement/prospectus will be mailed to
GCGC`s stockholders. Stockholders will be able to obtain a free copy of the
proxy statement/prospectus, as well as other filings containing information
about AngloGold Ashanti and GCGC, without charge, at the SEC`s Internet site
(http://www.sec.gov). Copies of the proxy statement/prospectus and the filings
with the SEC that will be incorporated by reference in the proxy
statement/prospectus can also be obtained, without charge, by directing a
request to AngloGold Ashanti, 76 Jeppe Street, Newtown, Johannesburg, 2001 (PO
Box 62117, Marshalltown, 2107) South Africa, Attention: Investor Relations, +27
11 637 6385, or to Golden Cycle Gold Corporation, 1515 S. Tejon, Suite 201,
Colorado Springs, CO 80906, Attention: Chief Executive Officer, (719) 471-9013."
Date: 16/05/2008 15:20:01 Supplied by www.sharenet.co.za
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