JOHANNESBURG (miningweekly.com) – South African gold-miner AngloGold Ashanti on Tuesday announced the terms of $650-million, 3,5% convertible bonds, due in 2014.

The bonds, issued by its wholly owned subsidiary AngloGold Ashanti Holdings Finance, would be convertible into American Depositary Shares (ADS) of AngloGold Ashanti. Each ADS currently represents one ordinary share of AngloGold Ashanti.

The company said in a statement issued on the JSE that the conversion of the bonds, at the initial conversion price of $47,61 per ADS, and without taking the option into account, would result in the issuance of 13,6-million ADSs.

The proceeds of the offering of the bonds would be used to refinance AngloGold Ashanti’s debt facilities as well as for general corporate purposes.

The company reported that the conversion premium to the reference volume weighted average price of the ADSs on the New York Stock Exchange on May 18, 2009, of $34,6272 was about 37,50 %.

The closing and settlement date of the offering was expected to occur on or about May 22.