Johannesburg, South Africa — MININGREVIEW.COM — 01 September 2009 – AngloGold Ashanti Limited “’ the world No.3 and Africa’s top gold producer “’ has announced an equity offering to fund its part of proposed takeover of Moto Gold Mines Limited.
A press release issued here said AngloGold had filed a preliminary prospectus supplement with the United States Securities and Exchange Commission in connection with its intention to proceed with a global offering of approximately 7.8 million new ordinary shares. The offering would be in the form of AngloGold Ashanti ordinary shares and American depositary shares representing ordinary shares.
The release added that AngloGold intended to use the net proceeds of the offering to fund its proposed acquisition of a 50% indirect interest in Moto Goldmines Limited, as announced on 16 July 2009
UBS Investment Bank is acting as sole book-runner for the offering.
AngloGold Ashanti is joining Randgold Resources as a non-operating joint venture partner to explore and develop Moto’s US$488 million (R3.9 billion) gold mine project in Democratic Republic of Congo.
AngloGold will be making a cash payment of US$244 million (almost R2 billion) for a 50% share of the venture, which Moto had expected to start production in 2012, and to produce an average annual output of 400 000 ounces.