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Anglo American moves out of gold

Gold – Anglo
American cuts its
London, England — MININGREVIEW.COM — 18 March 2009 – Global mining and natural resources leader Anglo American plc – one of the world’s largest mining companies – has announced a significant and historic transaction which brings to an end the mining giant’s involvement with gold.

An announcement here confirmed the sale of Anglo’s remaining 11.3% shareholding (39.9 million shares) in AngloGold Ashanti Limited – Africa’s biggest gold miner – to investment funds managed by Paulson & Co Incorporated for US$32.00 per share. The transaction has generated proceeds of US$1.28 billion (R13 billion).

The announcement confirmed that the proceeds would be used for general corporate purposes. “Consistent with Anglo American’s stated intention to dispose of this non-core holding, Anglo American no longer owns any shares in AngloGold Ashanti,” it added.

At 31 December 2008, Anglo American’s shareholding in AngloGold Ashanti was 16.2%. Subsequently, Anglo American disposed of 17.3 million shares in AngloGold Ashanti and, combined with this transaction, has realised total proceeds of US$1.77 billion (R18 billion).

Anglo revealed that Deutsche Bank had provided assistance in connection with the transaction. UBS and Goldman Sachs had also provided advice to Anglo American in relation to its shareholding in AngloGold Ashanti.