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Business & Finance | Dec 14, 2004

Anglogold Ashanti announces exploration in Laos

GNA

Accra, Dec. 14, GNA- Angogold Ashanti Ltd announced on Tuesday that it has entered into an exploration alliance with Oxiana Limited to explore for gold in Laos.

The alliance, it said, was another step in its new frontiers growth strategy, according a statement issued in Accra on Tuesday. "As part of this growth strategy, the company's business development team has been assessing opportunities in prospective, but under-explored, new frontier regions."

The statement said the agreement with Oxiana followed the investment in Trans-Siberian Gold in Russia and a strategic alliance in the Philippines with Red 5 Limited.

It noted that Laos was highly prospective for both gold and copper but was under-explored.

"This initiative aims to further unlock Laos' gold potential by combining AngloGold's technical expertise with Oxiana's in-depth country knowledge and operating experience."

AngloGold said the alliance would explore for gold throughout the country, excluding all areas currently held or under applied by Oxiana. Under key terms of the exploration alliance agreement, "the generative phase would be funded jointly by AngloGold Ashanti and Oxiana. Oxiana would be the initial Manager with both Oxiana and AngloGold Ashanti personnel seconded to the Alliance. It said projects generated, would be owned equally by AngloGold Ashanti and Oxiana.

AngloGold Ashanti has an option to earn an additional 10 per cent equity in any project generated by either sole funding the first 10 million dollars of expenditure where a project is still in early state (pre-drilling) or sole funding through to completion of a bankable feasibility (BFS), where a significant drill intersection has already been made.

The agreement said Oxiana was free to explore Laos for copper and any copper projects generated in the course of exploration by the Anglogold Ashanti-Oxiana alliance, and would revert to 100 per cent to Oxiana.

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