AngloGold Ashanti Sells Colombia Interest for $4.6 Million

By Anthony O. Goriainoff

AngloGold Ashanti Ltd. (ANG.JO) said Tuesday that it was selling its interests in Northern Colombia Holdings Ltd. to Royal Road Minerals Ltd., as it seeks to focus on its project portfolio in the country.

The gold mining company said it will receive payment of $4.6 million in cash upon closure of the transaction. Further payments of $5 million will be made should certain milestones be achieved. These include the declaration of an inferred mineral resource of not less than one million gold equivalent ounces on any specific area; completion of a feasibility study for any specific project; or the commencement of commercial production for any specific project.

The company said it would get $20 million in the first year following the start of commercial production for any specific project.

In the event that Royal Road Minerals declared an inferred mineral resource of not less than five million gold equivalent ounces on a specific project, AngloGold Ashanti has a one-off option to purchase a 75% interest in that project and certain of the receipts mentioned above would then be forfeited for that project.

Completion of the sale is dependent on Royal Road Minerals raising $3.5 million capital and the receipt by both companies of regulatory approvals.

Write to Anthony O. Goriainoff at anthony.orunagoriainoff@dowjones.com

(END) Dow Jones Newswires

March 05, 2019 08:38 ET (13:38 GMT)

AngloGold Ashanti (NYSE:AU)
Historical Stock Chart
From Aug 2024 to Sep 2024