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AngloGold tops up holding in Canadian junior

10th July 2009

By: Liezel Hill

  

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TORONTO (miningweekly.com) – Johannesburg-based gold-miner AngloGold Ashanti has exercised a right to maintain its 12,29% interest in Canadian junior International Tower Hill Mines, the smaller firm reported on Friday.

AngloGold's holding was diluted after shares were issued by International Tower since January 1, mainly in relation to the exercise of 7,75-million warrants, broker options and broker warrants in May.

The South African miner will now buy 1,22-million shares in a private placement, at C$2,68 apiece, for a total of C$3,26-million.

The price reflects the closing price of International Tower's shares on the TSX Venture Exchange on July 9, less 15%.

The shares issued in the private placement will be subject to a four-month hold period.

International Tower is exploring for gold in Alaska and Nevada, and plans to use the proceeds of the financing to continue work at its prospects, including the most advanced, the Livengood project, near Fairbanks in Alaska, and for general working capital.

In June 2006, International Tower bought AngloGold's Alaskan assets, and the agreement signed at the time gave AngloGold the right, twice a year, to maintain its then current equity ownership percentage in the company.

AngloGold also has a separate right to participate in any equity financings by the company up to its then pre-financing percentage equity interest.

Edited by Liezel Hill

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