Last Updated- Dec 29, 2009 20:36 - - 0 Comments


AngloGold Ashanti closes deal with IFC in mine purchase

AngloGold Ashanti Ltd., has closed a transaction with the International Finance Corporation (IFC) of the World Bank Group for the purchase of up to half of the IFC’s stake in Société d’Exploitation des Mines d’or de Sadiola (SEMOS) which owns the Sadiola Gold Mine in Mali.

In a press statement issued Tuesday December 29, 2009 and copied to ghanabusinessnews.com, AngloGold Ashanti said the other half of the IFC’s interest in SEMOS has been acquired by IAMGOLD Corporation on the same material terms and conditions.

The statement indicated that the transaction follows IAMGOLD’s announcement on November 2, 2009 whereby it offered to acquire the IFC’s entire interest in SEMOS and is as a result of both parties following the pre-emptive rights process in accordance with the SEMOS shareholders agreement.

The consideration for each 3% stake is US$6 million upfront followed by contingent payments during 2010, 2011 and 2012 for:  US$0.25 million for each year in which the average gold price exceeds US$900/oz or US$0.5 million for each year in which the average gold price exceeds US$1000/oz and US$0.5 million upon approval by the board of directors of SEMOS and the Republic of Mali to proceed with the development of the Sadiola Deep Sulphide Project or a public announcement by AngloGold Ashanti to proceed, the statement said.

In addition, AngloGold Ashanti and IAMGOLD have extended an offer to the Republic of Mali to take up its proportionate entitlement of 19.15% of the 6% sale interest, by acquiring an equal 0.574% interest in SEMOS from each of them on terms proportionately identical to those set out above, on or before 31 March 2010, it added.

By Emmanuel K. Dogbevi

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