JOHANNESBURG (miningweekly.com) – Gold companies AngloGold Ashanti and Randgold Resources, which are partners in Mali, on Thursday teamed up in a $488-million deal to acquire Moto Goldmines, which is developing a gold resource in the Democratic Republic of Congo (DRC).

The JSE-listed AngloGold said that it had entered into a series of agreements with the LSE-listed Randgold that could result in the payment of $244-million cash for 50% of Moto Goldmines. This was, however, dependent on Randgold acquiring Moto for $244-million in cash or shares or a combination of both.

AngloGold and Randgold will form a joint venture for the development and operation of the DRC project, which is owned 70% by Moto and 30% by Offices des Mines d’Or de Kilo-Moto, a DRC State-owned company known as Okimo.

The DRC project, which is at an advanced stage of exploration, has a Joint Ore Reserves Committee mineral resource of 22,5-million ounces of gold, which Randgold will operate. Randgold currently manages Morila in Mali, in which AngloGold is the main shareholder.

“We’re pleased to build on the successful partnership we’ve enjoyed with Randgold over the past nine years at Morila,’’ AngloGold CEO
Mark Cutifani said.

AngloGold’s cash agreement has made it possible for Randgold, headed by Dr Mark Bristow, to make a bid for Moto that is said to trump that of Red Back Mining.

Cutifani said that the partnership would benefit all stakeholders, especially the people of the DRC, by successfully developing one of the world’s most exciting gold orebodies in a joint effort that shared risk and rewards.

He described the proposed deal as another step in AngloGold’s Africa growth strategy and said that it complemented the company’s existing greenfields exploration activities in the DRC by taking a larger foothold in one of the world’s most prospective goldfields through one of Africa's largest undeveloped mineral resources.

Randgold said that it had approached Moto’s board of directors to exchange each outstanding common Moto share for the equivalent of C$5,00 a share.

Moto shareholders are being offered 0,07061 of a Randgold share; 0,07061 of a Randgold American depositary share; or C$4,47 cash a share. Should they opt for the full cash alternative, Randgold will issue 3,9-million shares and pay $244-million in cash to the Moto shareholders.