SOURCE: Randgold Resources

November 01, 2009 18:36 ET

Randgold Resources Signs Agreement to Increase Stake in Moto Gold Project

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF SUCH JURISDICTION

LONDON--(Marketwire - November 1, 2009) -


RANDGOLD RESOURCES LIMITED
Incorporated in Jersey, Channel Islands
Reg. No. 62686
LSE Trading Symbol: RRS
Nasdaq Trading Symbol: GOLD
("Randgold" or the "Company")

Randgold Resources Limited is pleased to announce that, together with AngloGold Ashanti Limited ("AngloGold"), it has entered into a definitive agreement with L'Office des Mines d'Or de Kilo-Moto ("OKIMO") to purchase an additional 20% stake in the Moto gold project (the "Moto Gold Project") for an aggregate consideration of approximately US$113.6 million (the "Acquisition").

On 15 October 2009, Randgold announced that, together with AngloGold, it had completed the acquisition of Moto Goldmines Limited ("Moto"), a gold exploration and development company which has a 70% interest in the Moto Gold Project. The Moto Gold Project is being developed by Kibali Goldmines sprl ("Kibali Goldmines"), a joint venture company which owns 100% of the Moto Gold Project and in which OKIMO, a Congolese para-statal entity, currently holds a 30% stake.

The Acquisition will be effected through the purchase from OKIMO of 20% of the issued share capital of Kibali Goldmines which will be held through Kibali (Jersey) Limited ("Kibali (Jersey)"), a company that is jointly owned by Randgold and AngloGold and the same vehicle which holds Randgold and AngloGold's joint venture interest in Moto. Following completion of the Acquisition, Randgold and AngloGold will together hold a 90% joint venture interest in Kibali Goldmines through Kibali (Jersey) (both directly and indirectly) and OKIMO will hold the remaining 10% stake.

Increasing its stake in the Moto Gold Project through the Acquisition is in line with Randgold's growth strategy of creating value by developing discoveries rather than paying a premium for established operations. As a result of the Acquisition, Randgold will dedicate the same management time and expertise that will be required to develop the Moto Gold Project, but will be able to leverage this intellectual capital over a larger economic interest in the project, increasing the return for its shareholders.

To view the full text of this press release, paste the following link into your web browser:

http://www.rns-pdf.londonstockexchange.com/rns/7344B_1-2009-11-1.pdf

Contact Information

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