AngloGold Ashanti Signs Agreement with China Explorer Dynasty Gold
Monday, February 27, 2006, AngloGold Ashanti Limited announced today an agreement to acquire an effective 8.7% stake in Dynasty Gold Corporation, a Vancouver-based exploration company with projects in China, through a $2m private placement in shares and warrants.
Dynasty Gold holds 70% of three existing projects in northwest China: Red Valley in Qinghai, Wild Horse in Gansu and Hatu in Xinjiang. The proceeds of the AngloGold Ashanti investment will be used to fund further exploration of the Red Valley and Wild Horse projects, both located in the prospective Qilian metallogenic belt.
AngloGold Ashanti will acquire its stake through the purchase of 5.75m Dynasty units at a price of C$0.40. Each unit will consist of one common share and one-half common share purchase warrant, exercisable at a price of C$0.60 for two years. In addition to this equity investment, the two companies have agreed to form a broader partnership, allowing AngloGold Ashanti the right to enter into joint ventures at both the Red Valley and Wild Horse projects, and, by investing a total of $5m over three years, earn 55% in these projects.
Commenting on the transaction, Executive Officer: Business Development Richard Duffy said, ’We are delighted to form this partnership with Dynasty Gold Corporation, which marks the next step in building our exploration presence in the prospective Qilian belt in China.’
Except for historical information contained herein, there are matters discussed in this news release that are forward-looking statements. Such statements are only predictions and actual events or results may differ materially. For discussion of important factors including, but not limited to development of the Company’s business the economic outlook in the gold mining industry, expectations regarding gold prices and production, and other factors, which could cause actual results to differ materially from such forward-looking statements, refer to the Company’s annual report on the Form 20-F for the year ended 31 December 2004 which is filed with the Securities and Exchange Commission on 14 July 2005.
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