Anglogold Ashanti and Randgold Resources jointly acquire a further 20% of the Moto gold project

AngloGold Ashanti  is pleased  to announce  that,  together with Randgold Resources  Limited,  they have jointly entered  into an agreement with OKIMO  to purchase  two-thirds of OKIMO's current 30% stake  in the  Moto  gold  project  for  US$113.6  million  (AngloGold  Ashanti  therefore  acquiring  an  effective additional 10% interest  for US$56.8 million).

This  follows  the announcement on 15 October 2009  that,  together with Randgold,  it had completed  the acquisition  of  Moto  Goldmines,  the  gold  exploration  and  development  company  which  has  a  70% interest in  the project. OKIMO is a Congolese parastatal entity.

Following completion of  the  transaction, Randgold and AngloGold will  together hold a 90%  interest  in the project,  and OKIMO will hold  the  remaining  10%  stake, maintaining  the  continued  vested interest of the Government of the Democratic Republic of the Congo (the "DRC") in the Moto Gold Project.   

"This  increases  our  participation  in  the  Moto  Gold  project,  which  is  an  important  part  of  our future growth  plans,''  said AngloGold Ashanti CEO Mark Cutifani.  ``We  look  forward  to working  closely with the DRC Government  and  continuing our  successful, decade-long  partnership with Randgold  to  bring resource to account.'' 

Finalisation of  the acquisition  is dependent on  the  fulfillment  of certain conditions precedent,  including South African Reserve Bank  approval   for AngloGold Ashanti,  shareholder  approval  for Randgold  and the delivery by  the Government of  the DRC of a notification  letter  regarding a meeting of  the Cabinet of the DRC confirming that the acquisition is in accordance with DRC law.

The acquisition will be effected  through  the purchase  from OKIMO of 20% of  the  issued share capital of Kibali Goldmines which will be held  through Kibali (Jersey) Limited, a company  that  is  jointly owned by  AngloGold  Ashanti  and  Randgold  and  the  same  vehicle  which  holds  AngloGold  Ashanti  and Randgold's recently acquired  joint venture interests in Moto.   

AngloGold  Ashanti  and  Randgold  have  secured  certain  undertakings  and  commitments  from  the Government of  the DRC  in respect of Kibali's exploitation permits and  licenses, as well as  the  existing DRC mining  legislation  and  the  fiscal  regime under which  the  project will operate under a protocol  to be  entered  into  between  Moto,  Kibali  (Jersey)  Limited  and  the  Government  of  the  DRC  and  a declaration from the Government of the DRC.  

In terms of this protocol:   

1.  the  renewal  of  all  the  exploitation  permits  held  by  Kibali Goldmines  will  be  authorised  by the Government  of  the DRC  subject  to  compliance with  the  provisions  of  the DRC mining legislation;

2.  for  so  long  as  the Moto Gold Project  is  in  commercial  production  and  provided  that  Kibali Goldmines complies with  the DRC mining  legislation, all exploitation permits  held by Kibali Goldmines shall be renewed on their earliest renewal dates; and    

3.  the  Government  of  the  DRC  acknowledges  that  no  further  payment  shall  be  required  in relation to the acquisition of Moto by AngloGold Ashanti and Randgold .

Under  the protocol, Moto will make  a payment  to  the Government of  the DRC  and OKIMO  of US$4.5 million within  three business days of  the delivery of certain documents by  the Government of  the DRC and OKIMO  which  are  conditions  to  the  acquisition  and  which  should  take  place  within  10  business days of entering into the agreement with OKIMO.  

Under  the  declaration,  AngloGold  Ashanti  and  Randgold  have  secured  additional  support  from  the Government  of  the  DRC,  in  terms  of  which,  amongst  other  matters,  the  DRC  government acknowledges  the  acquisition and  the  protocol and  their  terms,  confirms  that  the  current DRC mining legislation  is  in  full  force and effect and  that   there are no proposals  to amend  it, and  that DRC mining legislation  contains  the  totality  of  the  taxes,  royalties  and  other  fees  payable  to  the  government  and guarantees the stability of these provisions.  

The  acquisition  increases AngloGold  Ashanti's Ore Reserves  and Mineral Resources.    Based  on  the feasibility  study  completed  in March  2009  by Moto,  the  acquisition  (of  an  additional  10%  interest  in Kibali Goldmines),  in conjunction with  the acquisition of 50% of Moto completed earlier  this month, will increase  AngloGold  Ashanti's  existing  attributable  Ore  Reserves  by  2.5Moz  and  its  existing attributable Mineral Resources by approximately 10.1Moz.