AngloGold Ashanti Limited
(Incorporated in the Republic of South Africa \ Reg. No. 1944/017354/06)
ISIN No. ZAE000043485 - JSE share code: ANG \ CUSIP: 035128206 - NYSE share
code: AU
Website: www.anglogoldashanti.com
News Release
10 February, 2014
AngloGold Ashanti Enters into Agreement to Sell Navachab Mine
(ANGLOGOLD ASHANTI - Press Release) AngloGold Ashanti is pleased to announce
that it has signed a binding agreement to sell its entire interest in AngloGold
Ashanti Namibia (Proprietary) Limited ("AGAN"), a wholly owned subsidiary which
owns the Navachab Gold Mine ("Navachab"), to a wholly-owned subsidiary of QKR
Corporation Limited ("QKR") (the "Transaction").
The agreement provides for an upfront consideration based on an enterprise
value of US$110 million which will be adjusted to take into account AGAN's net
debt and working capital position on the closing date of the Transaction
("Closing Date"). The upfront consideration is payable in cash on the Closing
Date. In addition, AngloGold Ashanti will receive deferred consideration in the
form of a net smelter return ("NSR"). The NSR is to be paid quarterly for a
period of seven years following the second anniversary of the Closing Date and
will be determined at 2% of ounces sold by Navachab during a relevant quarter
subject to an average gold price of US$1,350 per ounce being achieved and
capped at 18,750 ounces sold per quarter.
The Transaction is subject to fulfilment of a number of conditions precedent,
including Namibian and South African regulatory and third party approvals,
which are expected to be obtained over the next several months.
"We are executing on our strategy to focus our efforts on assets of scale that
drive value in the business," said Charles Carter, AngloGold Ashanti's
Executive Vice President of Strategy and Business Development. "We're pleased
to have reached agreement to sell Navachab for fair value in the midst of a
difficult market - we believe that QKR is the right group to take Navachab
forward."
Lloyd Pengilly, President of QKR, noted that "Navachab is QKR's first
acquisition and is the result of an extensive review process. We believe
Navachab has significant potential and we look forward to working closely with
the management, staff and contractors of Navachab, the Government of Namibia
and Epangelo to steer the mine through its next phase of growth."
AngloGold Ashanti will continue to operate Navachab until the closing of the
Transaction.
Further information on Navachab
Navachab has been owned and operated by AngloGold Ashanti since the company was
formed in 1998. As at 31 December 2012, Navachab had gold Mineral Resources of
4,410,000 ounces and gold Ore Reserves of 2,100,000 ounces. In the year ended
31 December 2012, Navachab produced 74,000 ounces of gold at a cash cost of
US$929 per ounce and for the nine months ended 30 September 2013 produced
46,000 ounces of gold at a cash cost of US$755 per ounce. Navachab's
contribution represents less than 2% of AngloGold Ashanti's total production,
Mineral Resources and Ore Reserves.
Further information on QKR
QKR is a private mining company focused on acquiring and building a diversified
portfolio of development and growth assets in the EMEA region and the Americas.
Further information on Epangelo
Epangelo Mining Company (Pty) Ltd (Epangelo) is a private company with the
Government of the Republic of Namibia as the sole shareholder. Epangelo was
founded in 2008 and inaugurated on the 3rd of December 2009. The company was
established as a flagship to respond to the aspirations of government for
increased Namibian participation. It operates under various mineral policies
and regulations such the Minerals (Mining and Prospecting) Act No. 31 of 1992
and the State Owned Enterprises Governance Act, respectively.
Financial Advisers to AngloGold Ashanti
CIBC World Markets plc
Legal Advisers to AngloGold Ashanti
ENS Africa
Sponsor to AngloGold Ashanti
UBS South Africa (Pty) Limited
ENDS
__________________________________________________________________________________________________________________
Contacts for AGA
Media
Stewart +27-81-032-2563/
Bailey +27-11-637-6031
Chris +27-83-301-2481
Nthite
Investors
investors@anglogoldashanti.com
Stewart +27-81-032-2563/
Bailey +27-11-637-6031
Fundisa Mgidi +27-82-821-5322
Sabrina +1 (212) 858 7702 / +1
Brockman 646 379 2555
Contacts for QKR
David +44-207-457-2031/+44(0)
Simonson 7831-347-222
Anca Spiridon +44-207-457-2842/+44(0)
7887-884-794
Certain statements contained in this document, other than statements of
historical fact, including, without limitation, those concerning the economic
outlook for the gold mining industry, expectations regarding gold prices,
production, cash cost savings and other operating results, return on equity,
productivity improvements, growth prospects and outlook of AngloGold Ashanti's
operations, individually or in the aggregate, including the achievement of
project milestones, commencement and completion of commercial operations of
certain of AngloGold Ashanti's exploration and production projects and the
completion of acquisitions and dispositions, AngloGold Ashanti's liquidity and
capital resources and capital expenditures and the outcome and consequence of
any potential or pending litigation or regulatory proceedings or environmental
issues, are forward-looking statements regarding AngloGold Ashanti's
operations, economic performance and financial condition. These forward-looking
statements or forecasts involve known and unknown risks, uncertainties and
other factors that may cause AngloGold Ashanti's actual results, performance or
achievements to differ materially from the anticipated results, performance or
achievements expressed or implied in these forward-looking statements. Although
AngloGold Ashanti believes that the expectations reflected in such
forward-looking statements and forecasts are reasonable, no assurance can be
given that such expectations will prove to have been correct. Accordingly,
results could differ materially from those set out in the forward-looking
statements as a result of, among other factors, changes in economic, social and
political and market conditions, the success of business and operating
initiatives, changes in the regulatory environment and other government
actions, including environmental approvals, fluctuations in gold prices and
exchange rates, the outcome of pending or future litigation proceedings, and
business and operational risk management. For a discussion of such risk
factors, refer to the prospectus supplement to AngloGold Ashanti's prospectus
dated 17 July 2012 that was filed with the Securities and Exchange Commission
("SEC") on 26 July 2013. These factors are not necessarily all of the important
factors that could cause AngloGold Ashanti's actual results to differ
materially from those expressed in any forward-looking statements. Other
unknown or unpredictable factors could also have material adverse effects on
future results. Consequently, readers are cautioned not to place undue reliance
on forward-looking statements. AngloGold Ashanti undertakes no obligation to
update publicly or release any revisions to these forward-looking statements to
reflect events or circumstances after the date hereof or to reflect the
occurrence of unanticipated events, except to the extent required by applicable
law. All subsequent written or oral forward-looking statements attributable to
AngloGold Ashanti or any person acting on its behalf are qualified by the
cautionary statements herein.
This communication may contain certain "Non-GAAP" financial measures. AngloGold
Ashanti utilises certain Non-GAAP performance measures and ratios in managing
its business. Non-GAAP financial measures should be viewed in addition to, and
not as an alternative for, the reported operating results or cash flow from
operations or any other measures of performance prepared in accordance with
IFRS. In addition, the presentation of these measures may not be comparable to
similarly titled measures other companies may use. AngloGold Ashanti posts
information that is important to investors on the main page of its website at
www.anglogoldashanti.com and under the "Investors" tab on the main page. This
information is updated regularly. Investors should visit this website to obtain
important information about AngloGold Ashanti.