AngloGold takes full ownership of Brazilian mine for $220M
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IRJ - May 29 - AngloGold Ashanti is set to acquire the remaining 50 per cent stake in Mineracao Serra Grande in Brazil from Kinross for $220 million. The transaction will be funded from existing cash reserves and debt facilities.
To date, the Serra Grande mine has produced 3.4 million ounces (Moz) of gold. Last year, the mine produced 134,000 ounces of gold at a cash cost of $767 per ounce. Over the past four years, more than 1Moz of mineral resources have been added.
"This deal further simplifies our portfolio and gives us greater exposure to Brazil, where we've had significant success in growing our production as well as our reserve and resource base," Mark Cutifani, AngloGold Ashanti's chief executive, said. "We see long-term, lower risk, potential from Serra Grande, which is a key component of our strategy to grow the contribution from the Americas."
The operation comprises three underground mines and one open pit mine as well as a processing plant.
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