It was the Mark & Mark show late last week as the announcement came through that AngloGold Ashanti CEO Mark Cutifani and Randgold Resources CEO Dr Mark Bristow had teamed up to outbid a rival for a prospective gold asset in the Democratic Republic of Congo (DRC).

AngloGold Ashanti has for long shown faith in the gold prospectivity in the DRC and even withstood the harsh onslaught of nongovernmental organisation attack to hold its ground in the often-troubled north-eastern part of the Central Africa country.

But Randgold Resources tended to treat the DRC with considerable caution, preferring to expand in Mali and Côte d’Ivoire.

But Bristow last week showed willingness to take the plunge into the DRC, but reduced his risk by holding hands with the far bigger AngloGold Ashanti.

While Randgold Resources has partnered AngloGold Ashanti in Mali for more than a decade, it was more of a marriage of conve- nience relating to a period of cash constraint.

Randgold needed funding to go ahead with the Morila gold project, in Mali, and AngloGold obliged by buying into the deal as a major partner.

There was often operational bickering between the two, Randgold eventually taking over operational responsibility for Morila as it goes into depletion mode.

But the two have now locked arms against Red Back Mining, in the DRC, and, at the time of going to press, the jury was still out on whether the linked bid had been successful.

The two companies teamed up in a $488-million deal to acquire Moto Goldmines, which is developing a gold resource in the DRC.

The JSE-listed AngloGold Ashanti said that it had entered into a series of agreements with the LSE-listed Randgold that could result in the payment of $244-million in 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 Ashanti 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 Ashanti 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,’’ Cutifani said.

AngloGold Ashanti’s cash agreement has made it possible for Randgold 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 Anglo- Gold Ashanti’s Africa growth strategy and said that it complemented the company’s exist- ing greenfield exploration acti- vities 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 alter- native, Randgold will issue 3,9-million shares and pay $244-million in cash to the Moto shareholders.