JOHANNESBURG (miningweekly.com) - South African miner AngloGold Ashanti plans to raise $284-million to fund the proposed acquisition of Moto Goldmines, the company said on Tuesday.
AngloGold Ashanti would offer about 7,62-million shares in the form of ordinary shares or American Depositary Shares (ADS) at a price of $37,25 an ADS and R288,32 an ordinary share.
The miner said that the price represented a discount of about 3% to Monday's closing price on the NYSE.
UBS acted as sole book runner for the offering, which would close on September 8.
AngloGold Ashanti and Randgold Resources have entered into an agreement in July to acquire Moto, which owns a gold project in the Democratic Republic of Congo (DRC).
The combined bid is worth C$546-million, and AngloGold Ashanti would acquire an indirect 50% stake in Moto for $244-million in cash.
The two companies will cofund the development of the Moto project in the DRC. Randgold will operate the mine.
AngloGold Ashanti's share price fell by more than 4% in Johannesburg on Tuesday to R285,01 a share. It closed at R283,40 a share at 17:00.
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