Wednesday, 23rd August 2006 (2303 views)

AngloGold Ashanti (AA) has come to an agreement to sell its Bibiani mine for $40 million in cash.

The Bibiani mine, located in Ghana, will be sold to Central African Gold (CAG). The deal, which will also see the Bibiani North Prospecting Licence pass over to CAG, will only go through if it is approved by Ghanaian regulators.

Over the six months from December to June 2006, the mine had produced 25,000 ounces of gold. It holds estimated resources of 900,000 ounces and an ore reserve of 100,000 ounces.

The Ghana Minerals Commission is currently reviewing an application to enlarge the prospecting licence. If the application is refused, AA will repay $4 million to CAG as stipulated in the sale agreement.

AA deputy chief operating officer Daniel Owiredu said: "The sale of Bibiani will allow AngloGold Ashanti to better focus its resources on its long-life, core assets, including Obuasi and Iduapriem in Ghana."

 

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