HomeGoldAngloGold ups stake in Sadiola

AngloGold ups stake in Sadiola

The Sadiola gold
mine in Mali
Johannesburg, South Africa — MININGREVIEW.COM — 05 January 2010 – AngloGold Ashanti Limited “’ South Africa’s largest gold producer “’ has increased its interest in Société d’Exploitation des Mines d’or de Sadiola (SEMOS), which owns the Sadiola gold mine in Mali, from 38% to 41%.
Fin24 reports that this follows the closing of a transaction with the International Finance Corporation (IFC) for the purchase of up to half of its stake in SEMOS. Iamgold Corporation has similarly acquired half of the IFC’s interest on the same material terms and conditions.

AngloGold Ashanti said in a statement here that the transaction followed Iamgold’s announcement early in November 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 (R45 million) upfront, followed by contingent payments during 2010, 2011 and 2012 for US$0.25 million (R1.9 million) for each year in which the average gold price exceeds US$900 per ounce, or US$0.5 million (R3.8 million) for each year in which the average gold price exceeds US$1 000/oz, as well as US$0.5 million (R3.8 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.

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 the end of March 2010.