Mining company AngloGold Ashanti confirmed that the agreement to sell its 50% indirect stake in the Gramalote project, located in the department of Antioquia (Colombia), has now been implemented. Canadian company B2Gold will buy the shares for up to US$60 million.

The deal, which gives full ownership of the project to B2Gold, follows a joint sale process by partners AngloGold Ashanti and B2Gold for their combined interests in Gramalote that failed to produce a third party offer acceptable to either AngloGold Ashanti or B2Gold.

The Gramalote project is a joint venture between AngloGold Ashanti (50%) and B2Gold (50% owner and manager) who are project managers. Located in the Antioquia department, 124 kilometers northeast of Medellín.

“This sale will help increase our focus on the operational assets and projects we want to develop,” said AngloGold Ashanti CEO Alberto Calderón.

AngloGold Ashanti highlighted its commitment to long-term investment in Colombia with “the Quebradona copper and gold project and we look forward to playing a key role in the development of a modern and responsible mining sector in the country,” explained the director.

WHAT IS THE PAYMENT AGREEMENT?

AngloGold Ashanti will receive a cash payment of US$5,080 on the closing date of the proposed transaction. The balance will depend on the stage of construction and production reached by the Gramalote Project.

The proposed transaction is subject to restrictive conditions such as approval from the South African Reserve Bank, as the deal is executed prior to the implementation of AngloGold Ashanti’s proposed corporate restructuring relating to the domicile of its new company in the UK and its listing. New York Stock Exchange.

Upon completion of the optimized FS work in the second half of 2022, both partners (AngloGold Ashanti and B2Gold) determined that the Gramalote project did not meet their development investment threshold.

After reviewing alternatives regarding the project, both parties agreed to initiate a joint sales process for the project. Gramalote has attributable mineral resources of 2.6Moz, including mineral reserves of 1.6Moz.