AngloGold update on the sale of Tau Lekoa gold mine to Simmer & Jack

On 17 February 2009 AngloGold Ashanti announced the sale of its Tau Lekoa mine, together with the adjacent Weltevreden and Goedgenoeg project areas near Orkney to Simmer and Jack Mines Limited.  At the time, it was anticipated that the earliest effective date of the sale would be around 1 January 2010, although the sale agreement did contemplate a possible end date of 31 March 2010 which could be extended by agreement between the parties.

At this stage, all suspensive conditions to the sale have been fulfilled except for the approval of the Department of Mineral Resources (DMR) of the transfer of the applicable mining rights. The application for the transfer has been submitted, and DMR approval is now expected to occur sometime during 2010.  

The anticipated earliest sale completion date of 31 December 2009 will, as a result, not be achieved and the duration of the interim period provided for in the sale agreement will therefore be extended. The parties are currently in discussion regarding the most appropriate arrangements in operating the mine during the extended interim period.  A further announcement to outline the details of these arrangements will be made once these terms are finally decided. The parties also continue to work closely with the DMR to ensure the sale is completed as soon as possible