AgloGold Ashanti buys Moto Gold Mines

The World’s third largest gold producer, AngloGold Ashanti has signed agreements with Randgold Resources Ltd., to buy Moto Goldmines Ltd located in the Democratic Republic of the Congo (DRC).

The company has said in a press release copied to ghanabusinessnews.com that by the terms of the agreement, AngloGold Ashanti will acquire an indirect 50% interest in Moto for approximately $244 million in cash.

At the same time, AngloGold Ashanti and Randgold Resources will form a joint venture for the development and operation of the Moto gold project. Moto owns 70% of the project which is at an advanced exploration stage with a JORC compliant Mineral Resource of some 22.5 million ounces of gold as published on 21 January 2009, the release said.

The other 30% joint venture interest in the project is owned by Offices des Mines d’Or de Kilo-Moto (“Okimo”), a DRC state-owned company. Under the terms of the proposed joint venture agreement, Randgold Resources will be appointed operator of the project.

AngloGold Ashanti’s agreement to acquire its indirect joint venture interest in Moto, is subject to the completion of the acquisition of Moto by Randgold Resources and, as is customary for transactions of this nature, an application has been made by AngloGold Ashanti to, and is currently under consideration by, the South African Reserve Bank, it added.

By Emmanuel K. Dogbevi