AngloGold Ashanti Signs Heads of Agreement with Antofagasta plc
Friday, July 14, 2006, AngloGold Ashanti Ltd is pleased to announce the signing of a Heads of Agreement with LSE-listed Antofagasta PLC to jointly explore a highly prospective belt in Southern Colombia for new gold and copper deposits. AngloGold Ashanti will include all of its mineral applications, contracts, and third-party contracts within the area of interest in the new joint venture.
Under the terms of the agreement, Antofagasta will commit to fund a minimum of US$1.3m of exploration within 12 months of the signing of the agreement, with the option of investing an additional US$6.7m within four years of the commencement date of the agreement in order to earn-in to 50% of the joint venture. Once Antofagasta has earned into its 50% interest, a joint management committee will determine which properties are “copper-dominant” and which are “gold-dominant” and, by funding bankable feasibility studies within eight years of the commencement date of this agreement, Antofagasta and AngloGold Ashanti will have the right to increase their interests in copper-dominant and gold-dominant properties, respectively, by an additional 20%.
Commenting on the transaction, Executive Officer: Business Development Richard Duffy said, ’Our new relationship with Antofagasta reflects our continuing commitment to expediently exploring our extensive land position in Colombia, both through our own programme and, in some areas of our concession, in partnership with other companies, thereby continuing to leverage our significant first-mover advantage in this highly prospective region.’
Certain statements made during this presentation, including, without limitation, those concerning the economic outlook for the gold mining industry, expectations regarding gold prices, production, cash costs and other operating results, growth prospects and outlook of AngloGold Ashanti’s operations including the completion and commencement of commercial operations of certain of AngloGold Ashanti’s exploration and production projects, and its liquidity and capital resources and expenditure, contain certain forward-looking statements regarding AngloGold Ashanti’s operations, economic performance and financial condition. Although AngloGold Ashanti believes that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct. Accordingly, results could differ materially from those set out in the forward-looking statements as a result of, among other factors, changes in economic and market conditions, success of business and operating initiatives, changes in the regulatory environment and other government actions, fluctuations in gold prices and exchange rates, and business and operational risk management. For a discussion of such factors, refer to AngloGold Ashanti’s annual report on Form 20-F for the year ended 31 December 2005, which was filed with the Securities and Exchange Commission (SEC) on 17 March 2006. AngloGold Ashanti undertakes no obligation to update publicly or release any revisions to these forward-looking statements to reflect events or circumstances after today’s date or to reflect the occurrence of unanticipated events.
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