SOURCE: AngloGold Ashanti

June 01, 2006 12:57 ET

AngloGold Ashanti Signs Agreement With Bema Gold Corporation

JOHANNESBURG, SOUTH AFRICA -- (MARKET WIRE) -- June 1, 2006 --AngloGold Ashanti (NYSE: AU) is pleased to announce the signing of a Heads of Agreement with Bema Gold Corporation to form a New Company ("Newco") to jointly explore a select group of AngloGold Ashanti's mineral opportunities located in Northern Colombia. Newco's initial work will be focused on the prospective La Mina and El Pino targets.

Under the terms of the agreement, Newco will have the right to earn-in up to a 51% interest on any property that AngloGold Ashanti elects to farm-out within the area of interest, by executing a minimum of 3,000 meters of exploration drilling and by matching prior AngloGold Ashanti exploration expenditure. AngloGold Ashanti has initially agreed to provide a minimum of eight exploration properties to the venture and Bema will provide or arrange a minimum $US5 million in exploration funding.

The agreement contemplates that within two years, Newco will be listed on a recognized stock exchange, at which point AngloGold Ashanti will hold 20% of Newco's issued capital.

Commenting on the transaction, Executive Officer: Business Development Richard Duffy said, "This new relationship with Bema Gold Corporation complements our own dedicated exploration program in Colombia by ensuring that we optimally fund and explore our extensive land position, partially through this type of partnering strategy, thereby leveraging our first-mover advantage in this highly prospective gold region."

AngloGold Ashanti has been actively exploring in Colombia since 1999 and has a strong commitment to exploring and developing Colombian mineral resources in an environmentally and socially responsible way.


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.

Contact Information

  • Queries:

    North America
    Andrea Maxey
    Tel: +1 212 750 7999
    +1 646 549 8992
    E-mail: Email Contact

    South Africa
    Michael Clements
    Tel: +27 (0) 11 637 6647
    +27 82 339 3890
    Email: Email Contact