AngloGold Ashanti to Sell Navachab Gold Mine

AngloGold Ashanti Ltd. (NYSE:AU,ASX:AGG) announced on Monday that it has signed a binding agreement to sell its subsidiary, AngloGold Ashanti Namibia (Proprietary) Ltd., to a QKR Corporation Ltd. subsidiary. AngloGold Ashanti Namibia owns the Navachab gold mine.

As quoted in the press release:

The agreement provides for an upfront consideration based on an enterprise value of US$110 million which will be adjusted to take into account AGAN’s net debt and working capital position on the closing date of the Transaction (“Closing Date”). The upfront consideration is payable in cash on the Closing Date. In addition, AngloGold Ashanti will receive deferred consideration in the form of a net smelter return (“NSR”). The NSR is to be paid quarterly for a period of seven years following the second anniversary of the Closing Date and will be determined at 2% of ounces sold by Navachab during a relevant quarter subject to an average gold price of US$1,350 per ounce being achieved and capped at 18,750 ounces sold per quarter.

The Transaction is subject to fulfilment of a number of conditions precedent, including Namibian and South African regulatory and third party approvals, which are expected to be obtained over the next several months.

Click here to read the full AngloGold Ashanti Ltd. (NYSE:AU,ASX:AGG) press release.