AngloGold Ashanti announced yesterday that it has agreed to sell its entire 50% indirect interest in its Columbian Gramalote Project to B2Gold Corp for up to $60 million (R1.1 billion) following the venture not yielding investments.
The agreement follows a joint sales process by B2Gold and AngloGold for their combined interests in Gramalote, which failed to yield an offer from a third party that was acceptable to either company.
"Following the completion of the FS optimised work in the second half of 2022, both partners determined that the Gramalote project does not meet their investment thresholds for development," AngloGold said.
The Gramalote project is a joint venture between AngloGold Ashanti (50%) and B2Gold, 50% owner and the manager. It is situated in the Department of Antioquia, 124km northeast of Medellín in Columbia.
AngloGold Ashanti CEO Alberto Calderon said: “This sale will help increase our focus on our operating assets and the projects we intend to develop.
"AngloGold Ashanti 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 $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, it said.
"The proposed transaction, subject to limited conditions including approval of the South African Reserve Bank, as the agreement has been executed before 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," the group said.
BUSINESS REPORT