Wrap Text
ANG - AngloGold Ashanti - Anglogold Ashanti And De Beers Form Joint Venture In
Marine Exploration And Mining
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 AND DE BEERS FORM JOINT VENTURE IN MARINE EXPLORATION AND
MINING
AngloGold Ashanti Limited and the De Beers Group of Companies are pleased to
announce the formation of a joint venture with the purpose of initially
exploring for, and ultimately mining, gold and other minerals and metals, but
excluding diamonds, unless these occur together with other target minerals and
metals. The joint venture`s activities will be focussed on marine deposits
located in, or adjacent to, the area between the high water mark and the edge
of the continental shelf on a worldwide basis. This area of interest for the
purpose of the joint venture is defined as the continental shelf.
De Beers, together with its wholly owned subsidiary De Beers Marine and other
companies and associates within the De Beers Group of Companies, have, through
their marine diamond exploration and mining activities, developed certain
skills, expertise and proprietary technology in relation to the exploration
and mining of marine deposits on the continental shelf. The establishment of
this joint venture will allow AngloGold Ashanti to take first-mover advantage
of the opportunity of partnering with a world leader in the field of marine
exploration and mining with a view to target the exploration for, and mining
of, the target minerals from mineral deposits located on the continental
shelf. This complements AngloGold Ashanti`s existing terrestrial exploration
and mining activities and its mineral resource, ore reserve and production
bases.
AngloGold Ashanti will hold its offshore interests in the joint venture
through its wholly owned offshore subsidiary, AngloGold Ashanti Marine
Exploration Limited (AGAME) and its South African and Southern African
Development Community interests in the joint venture either directly or via a
South African nominee. De Beers will hold its interests in the joint venture
via its wholly owned subsidiary, De Beers Group Exploration Holdings Limited
(DBGEX). AngloGold Ashanti and De Beers, through AGAME and DBGEX, will pursue
their activities in the joint venture via appropriate sub-joint venture
structures in the relevant jurisdictions targeted by the participants.
The joint venture will establish a technical services company (Techco) to be
jointly owned by AngloGold Ashanti and De Beers. The participants intend to
develop Techco into a fully-functional marine exploration and mining services
company, including all the skills, expertise and further proprietary
technology that it may develop or acquire, within the joint venture. Techco
and DBM will provide the necessary, skills, expertise, technology and
facilities related to marine exploration and mining activities on the
continental shelf, under various service agreements to be entered into with
the various sub-joint venture opportunities pursued by the participants.
AngloGold Ashanti`s funding commitment (via AGAME) under the joint venture,
subject to regulatory approval (including that of the South African Reserve
Bank) and AngloGold Ashanti`s ongoing approval of budgets and work programmes,
is to sole fund the joint venture and Techco until the completion of an
initial exploration period of at least three consecutive sampling seasons as
approved and budgeted for prior to 31 December 2012, or the date upon which
AngloGold Ashanti has sole funded a total amount of US$40 million, whichever
milestone is achieved first. Upon the conclusion of this period, AngloGold
Ashanti will have earned-in to equivalent interests to De Beers in all the sub-
joint venture opportunities pursued under the joint venture. Following this
initial exploration period, AngloGold Ashanti and De Beers will be equal
partners in the joint venture and will therefore equally fund and share in the
benefits arising from all existing and future opportunities pursued under the
joint venture. AngloGold Ashanti and De Beers will seek to secure majority
interests for the joint venture in any sub-joint venture that involves a third
party.
"By combining one of the world`s most successful gold exploration teams with
the foremost authority in ocean mining and exploration, we`re creating a
powerful base to tackle this new frontier,`` AngloGold Ashanti Chief Executive
Officer Mark Cutifani said. "By building on our current terrestrial
exploration, development and mining activities globally we`ll work to expand
our resource base from an exciting array of shallow marine prospects.``
ENDS
AGA22.07
5 October 2009
JSE Sponsor - UB
Contacts
Alan Fine (Media) Tel: +27 (0) 11 637 6383 Mobile: +27 (0) 83 250 0757
E-mail: afine@anglogoldashanti.com
Joanne Jones (Media) Tel: +27 (0) 11 637- 6813 Mobile: +27 (0) 82 896 0306
E-mail: jjones@AngloGoldAshanti.com
Sicelo Ntuli (Investor) Tel: +27 (0) 11 637 6339 Mobile: +27 (0) 71 608 991
E-mail: sntuli@AngloGoldAshanti.com
Stewart Bailey (Investor) Tel: +1 212 836 4303 Mobile: +1 646 338 4337
E-mail: sbailey@AngloGoldAshanti.com
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 and completion of
acquisitions and dispositions, AngloGold Ashanti`s liquidity and capital
resources, and expenditure and the outcome and consequences of any pending
litigation proceedings, 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.
Date: 05/10/2009 08:45:13 Supplied by www.sharenet.co.za
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