AngloGold Ashanti to sell Brazilian mine
Gold miner AngloGold Ashanti has agreed to sell its interest in Mineração Serra Grande mine (MSG) in Goiás, Brazil, to mid-tier gold and copper producer Aura Minerals.
The company will sell MSG to a Brazilian-incorporated affiliate of Aura for a cash consideration of $76-million on closing subject to certain working capital adjustments as at the closing date; and deferred consideration payments equivalent to a 3% net smelter returns participation over the current mineral resource of MSG inclusive of the mineral reserve.
These deferred consideration payments will be paid quarterly in cash.
The recent focus at MSG has been on stabilising the operations, including the decommissioning of the legacy tailings storage facility, which is nearing completion.
However, MSG remains one of AngloGold Ashanti’s higher-cost and its smallest operation by production, the company points out.
“This sale ensures we further sharpen our focus on capital allocation, operating efficiencies and the optimisation of our portfolio. We’ve also worked hard to ensure MSG and its excellent team joins an established company which will continue to be responsible stewards of this asset for the benefit of all stakeholders,” says AngloGold Ashanti CEO Alberto Calderon.
The sale excludes certain subsidiaries of Mineração Serra Grande, which hold assets that do not form part of MSG’s mining operations and include properties.
These will remain in the AngloGold Ashanti group and will be transferred from under Mineração Serra Grande by means of a spin-off prior to closing.
The disposal is subject to the fulfilment of several conditions, expected during the third quarter.
The MSG operation comprises three mechanised underground mines and an openpit operation, with one dedicated metallurgical plant with a yearly capacity of 1.5-million tonnes.
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