Contact Information: ENQUIRIES Chief Executive Dr Mark Bristow +44 788 071 1386 +44 779 775 2288 Financial Director Graham Shuttleworth +44 1534 735 333 +44 779 614 4438 Investor & Media Relations Kathy du Plessis +44 20 7557 7738 Email: Website: www.randgoldresources.com
Randgold to Move Quickly on Advancing Moto Project
| Source: Randgold Resources
LONDON--(Marketwire - October 15, 2009) - Randgold Resources plans to move swiftly towards a
bankable feasibility study on the Moto gold project following the
completion today of its business combination transaction with Moto
Goldmines Limited, chief executive Mark Bristow said.
Moto shareholders earlier voted in favour of the deal in terms of which
they will exchange their Moto shares for Randgold shares or cash.
Simultaneously, AngloGold Ashanti has acquired a 50% indirect interest in
Moto for cash and Randgold and AngloGold will be jointly responsible for
developing the Moto project, which will be operated by Randgold. Moto owns
a 70% stake in the Moto Gold project. The government of the Democratic
Republic of Congo, through OKIMO, holds the remaining 30% interest in the
project, which is Moto's principal asset.
The Moto gold project is one of the largest undeveloped gold deposits in
Africa. A feasibility study completed by Moto in March 2009 envisages an
open pit and underground mining operation with probable mineral reserves of
5.5 million ounces which is planned to produce some 2.4 million ounces of
gold in its first five years.
"The Moto deal essentially represents the acquisition of an opportunity to
convert a very big if technically challenging gold deposit into a
profitable mine," Bristow said. "This is in line with our growth strategy
of creating value by developing discoveries rather than paying a premium
for established operations. It marks our expansion into a new and exciting
gold belt, while retaining our African focus."
Bristow noted that the Randgold capital projects team which would be
responsible for Moto was the same one which had successfully developed the
Morila and Loulo mines in Mali and was currently building the Tongon mine
in Côte d'Ivoire. Randgold's proven ability to find, finance, develop and
operate mines in Africa would be enhanced at Moto by AngloGold's own
considerable resources and expertise, he said. The two companies already
have a joint venture at Morila.
ABOUT RANDGOLD
Randgold is a gold mining and exploration company with its principal
activities focused on West and East Africa and stated proven and probable
reserves of 8.82 Moz as at 31 December 2008 for Loulo, Tongon and Massawa
and 30 April 2009 for Morila. In Mali, Randgold has an 80% controlling
interest in the Loulo mine, which is currently mining from two open pits
and has just commenced mining from one underground mine whilst developing a
second underground mine. In the Loulo region, Gounkoto, on the Loulo
permit, is shaping up as a significant new discovery. Also in Mali,
Randgold owns a 40% interest in the Morila joint venture, the owner of the
Morila mine, which it also operates. In Côte d'Ivoire, Randgold owns an
effective 84% controlling interest in the Tongon development project, where
it has commenced construction and expects to be in production towards the
end of 2010. In Senegal, Randgold has a new discovery, Massawa, which is
at prefeasibility stage and which it believes has multi million ounce
potential and the makings of a world-class orebody. Randgold also has
exploration permits and licenses covering substantial areas in Mali, Côte
d'Ivoire, Burkina Faso, Ghana, Senegal and Tanzania.
ABOUT MOTO
Moto Goldmines Limited is a gold exploration and development company which
owns a 70% stake in the Moto Gold project in the north-east of the
Democratic Republic of Congo and has advanced the project from exploration
through to feasibility. The project is a joint venture between L'Office
des Mines d'or de Kilo-Moto ('OKIMO') and Moto and covers an area of
approximately 1 836 km2 with significant mineral resources and growth
potential.
DISCLAIMER: Statements made in this document with respect to Randgold
Resources' current plans, estimates, strategies and beliefs and other
statements that are not historical facts are forward-looking statements
about the future performance of Randgold Resources. These statements are
based on management's assumptions and beliefs in light of the information
currently available to it. Randgold Resources cautions you that a number
of important risks and uncertainties could cause actual results to differ
materially from those discussed in the forward-looking statements, and
therefore you should not place undue reliance on them. The potential risks
and uncertainties include, among others, risks associated with:
fluctuations in the market price of gold, gold production at Morila and
Loulo, the development of Loulo and Tongon and estimates of resources,
reserves and mine life. For a discussion on such risk factors refer to the
annual report on Form 20-F for the year ended 31 December 2008 which was
filed with the United States Securities and Exchange Commission (the 'SEC')
on 15 May 2009 and other filings made with the SEC. Randgold Resources
sees no obligation to update information in this release. CAUTIONARY NOTE
TO US INVESTORS: the 'SEC' permits companies, in their filings with the
'SEC', to disclose only proven and probable ore reserves. We use certain
terms in this release, such as "resources", that the 'SEC' does not
recognise and strictly prohibits us from including in our filings with the
'SEC'. Investors are cautioned not to assume that all or any parts of our
resources will ever be converted into reserves which qualify as 'proven and
probable reserves' for the purposes of the SEC's Industry Guide number 7.
RANDGOLD QUALIFIED PERSONS
The mineral reserve estimate related to the Loulo Gold Mine was reviewed
and approved by Herbert Gerald Waldeck and Mark David Wanless of SRK
Consulting (South Africa) (Pty) Ltd ('SRK'), (each a Qualified Person under
National Instrument 43-101 - Standards of Disclosure for Mineral Projects
of the Canadian Securities Administrators ('NI 43-101')) and documented in
the Technical Report on the Loulo Gold Mine, Randgold Resources, Mali,
dated 3 September 2009. The mineral reserve estimate related to the Tongon
project was reviewed and approved by Mark David Wanless and Herbert Gerald
Waldeck of SRK and documented in the Technical Report on the Tongon
Development Project, Ivory Coast, dated 10 September 2009. The mineral
resource estimate related to the Massawa Project was reviewed and approved
by Mark David Wanless of SRK and documented in the Technical Report on the
Massawa Project, Senegal, dated 3 September 2009. The mineral reserve
estimate related to the Morila Gold Mine was reviewed and approved by Shaun
Wayne Crisp (a Qualified Person under NI 43-101) and Herbert Gerald Waldeck
of SRK and documented in the Technical Report on the Morila Gold Mine,
Randgold Resources, Mali, dated 3 September 2009. Each of these reports is
available under Moto's profile on the SEDAR website at www.sedar.com
MOTO QUALIFIED PERSONS
The mineral reserve and gold production estimates related to the Moto gold
project included in this release were reviewed and approved by Quinton de
Klerk, a director of Cube Consulting Pty Ltd, Paul Kerr, a senior
consultant (underground mining) employed by SRK Consulting Pty Ltd and Fred
Kock, a lead metallurgist of Orway Mineral Consultants (WA) Pty Ltd (each a
Qualified Person under National Instrument 43-101 - Standards of Disclosure
for Mineral Projects of the Canadian Securities Administrators ('NI
43-101')) and documented in the Amended and Restated Technical Report, Moto
Gold Project, Democratic Republic of Congo, dated 20 April 2009.