Anglogold Ashanti sells Bibiani Mine

Accra, Aug. 23, GNA - AngloGold Ashanti has sold its entire business undertaking in Bibiani for 40 million dollars to UK's Central African Gold plc (CAG).

The deal consists of the sale of the Bibiani mines where production slid during the last quarter, for 36 million dollars and prospecting rights for Bibiani North for four million dollars.

A statement issued in Accra said for the six months ended 30 June 2006 Bibiani produced 24,000 ounces of gold at a total cash cost of 329 dollars per ounce. As at 31 December 2005, Bibiani had Ore Reserves of 100,000 ounces and Mineral Resources of 900,000 ounces. Mr John Owusu, Public Affairs Manager of Anglogold Ashanti, told the Ghana News Agency that AngloGold Ashanti would transfer all of its assets related to Bibiani to CAG.

This includes all of Bibiani's employees, fixed mining and non-mining assets, inventory, trade debtors and intellectual property as well as the Bibiani mining lease and the Bibiani North prospecting licence.

The statement said CAG would assume all of AngloGold Ashanti's rights and obligations under this agreement in terms of the Reclamation Security Agreement related to Bibiani, including all amounts deposited by AngloGold Ashanti in respect of its obligations under the agreement upon the closing of the sale.

CAG would also assume all outstanding liabilities related to Bibiani, including those related to rehabilitation and employees but excluding certain claims previously instituted against AngloGold Ashanti.

Commenting on the transaction, Daniel Owiredu, AngloGold Ashanti's Deputy Chief Operating Officer, said 93the sale of Bibiani will allow AngloGold Ashanti to better focus its resources on its long-life, core assets, including Obuasi and Iduapriem in Ghana, which remain a key production region for the Company=94.