AngloGold Ashanti sells interest in Navachab mine

10 Feb 2014 18:00pm
WINDHOEK, 10 FEB (NAMPA) – AngloGold Ashanti has reached an agreement to sell its entire interest in the Navachab Gold Mine to United Kingdom (UK)-based company QKR Corporation Limited.
AngloGold Ashanti Namibia (AGAN) is a wholly owned subsidiary which owns the Navachab Gold Mine.
“We are pleased to have reached agreement to sell Navachab for fair value in the midst of a difficult market. We believe that QKR is the right group to take Navachab forward,” AngloGold Ashanti’s Executive Vice President of Strategy and Business Development Charles Carter, was quoted as saying in a media statement issued on Monday.
“We are executing our strategy to focus our efforts on assets of scale that drive value in the business,” Carter stated.
The agreement provides for an upfront consideration based on an enterprise value of US.dollars 110 million (approximately N.dollars 1,2 billion) which will be adjusted to take into account AGAN’s net debt and working capital position on the closing date of the transaction.
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 two per cent of ounces sold by Navachab during a relevant quarter subject to an average gold price of US.dollars 1 350 (approximately N.dollars 14 850) per ounce being achieved and capped at 18 750 ounces sold per quarter, he explained.
QKR president Lloyd Pengilly was quoted as saying in the statement that Navachab is QKR's first acquisition and is the result of an extensive review process.
“We believe Navachab has significant potential and we look forward to working closely with the management, staff and contractors of Navachab, the Government of Namibia and Epangelo to steer the mine through its next phase of growth,” he said.
AngloGold Ashanti will continue to operate Navachab until the closing of the transaction.