HomeBusiness and policyAnglogold Ashanti sharpens operational focus with sale of Gramalote stake

Anglogold Ashanti sharpens operational focus with sale of Gramalote stake

AngloGold Ashanti continues to sharpen focus on its operating assets and high-return development projects through an agreement to sell its entire 50% indirect interest in the Gramalote Project to B2Gold Corp for a total consideration of up to US$60-million.

The agreement, which provides full ownership of the project to B2Gold, follows a joint sales process by partners AngloGold Ashanti and B2Gold for their combined interests in Gramalote that failed to yield an offer from a third party that was acceptable to either AngloGold Ashanti or B2Gold. B2Gold is the manager of the project.

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“This sale will help increase our focus on our operating assets the projects we intend to develop,” AngloGold Ashanti CEO Alberto Calderon said. “The company remains a committed, long-term investor in Colombia with our exciting Quebradona copper and gold project and we look forward to playing a key role in developing of a modern, responsible mining sector in the country.”

AngloGold Ashanti will receive a cash payment of US$20-million at the closing date of the proposed transaction, with the balance dependent on project construction and production milestones that the Gramalote Project reaches.

The proposed transaction, subject to limited conditions including approval of the South African Reserve Bank, as the agreement has been executed prior to the implementation of AngloGold Ashanti’s proposed corporate restructuring related to its new corporate domicile in the United Kingdom and primary listing on the New York Stock Exchange, is expected to close by the end of the year.