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You are here: Home > 2000 > Agreement Signed In Respect Of Ashanti’s Sale To AngloGold Of A 50% Interest In Geita

Agreement Signed In Respect Of Ashanti’s Sale To AngloGold Of A 50% Interest In Geita


Monday, June 26, 2000
Further to the joint announcement on 5 April 2000, Ashanti Goldfields Company Limited (Ashanti) and AngloGold Limited (AngloGold) are pleased to announce that they have signed the Agreement in respect of the acquisition by AngloGold of a 50% interest in Ashanti’s Geita gold project in Tanzania.

The two companies have also agreed the terms of a Joint Venture Agreement which will govern how the two partners will jointly operate the Geita project.

As previously announced, AngloGold will pay Ashanti US$205 million in cash for a 50% share of the project and will procure or provide project financing to the Geita project totalling US$130 million. Ashanti and AngloGold will each be responsible for repayment of 50% of this project financing from their respective shares of project cashflow.

The transaction, which is subject to regulatory and governmental approvals and Ashanti shareholder and bank creditor approvals, is expected to be completed by the end of September.

Geita is currently being commissioned and achieved its first gold pour earlier this month, three months ahead of schedule. Under the current mine plan, annual production is estimated at 500,000 ounces at an operating cash cost of under US$180 per ounce. The official opening of the mine is scheduled for 3 August.




 
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