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AngloGold and De Beers form JV to explore continental shelf deposits

Published: 04:30 05 Oct 2009 EDT

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Multiple listed gold producer AngloGold Ashanti (NYSE: AU; JSE: ANG; ASX: AGG; LSE: AGD) has formed a joint venture (JV) with De Beers Group to focus on exploration and ultimately mining of marine deposits on the continental shelf around the globe.


AngloGold will hold its offshore interests in the JV through its wholly owned subsidiary AngloGold Ashanti Marine Exploration Limited (AGAME), while De Beers will hold its interests via wholly owned subsidiary De Beers Group Exploration Holdings Limited (DBGEX).


The JV will target gold along with other metals and minerals, excluding diamonds unless they occur with other targets minerals and metals. The participants will establish technical company Techno to develop it into a fully-functional marine exploration and mining services company, which, along with De Beers Marine, will provide the necessary technology and facilities related to the marine exploration and mining activities in the targeted areas.


“By building on our current terrestrial exploration, development and mining activities globally we'll work to expand our resource base from an exciting array of shallow marine prospects,” said Chief Executive of AngloGold Mark Cutifani.


AngloGold will solely fund the joint venture and Techno until the completion of an initial exploration period of at least three consecutive sampling periods as approved and budgeted to 31 December 2012, or until the company has funded a total amount of US$40 million, whichever milestone comes first. Upon the conclusion of this period, AngloGold will have earned-in to equivalent interests to De Beers in all the sub-JV opportunities pursued under the JV.


This is the company’s second major partnership deal in the recent months. AngloGold, which is the world’s third largest gold producer having accounted for 7% of global yellow metal production in 2008, announced a strategic alliance with Thani Dubai Mining Limited to explore, develop and operate mines in Middle East and North Africa back in June.

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