AngloGold Ashanti To Sell Navachab Gold Mine - Quick Facts

(RTTNews) - AngloGold Ashanti (AU) Monday said it has signed a binding agreement to sell its entire interest in AngloGold Ashanti Namibia (Proprietary) Limited or AGAN, a wholly-owned subsidiary which owns the Navachab Gold Mine, to a wholly-owned subsidiary of QKR Corporation Limited.

The agreement provides for an upfront consideration based on an enterprise value of $110 million, which will be adjusted for AGAN's net debt and working capital position on the closing date of the transaction. The upfront consideration is payable in cash on the closing date.

In addition, AngloGold Ashanti will receive deferred consideration in the form of a net smelter return or NSR.

The NSR is to be paid quarterly for seven years following the second anniversary of the closing date. It will be determined at 2 percent of ounces sold by Navachab during a relevant quarter subject to an average gold price of $1,350 per ounce being achieved and capped at 18,750 ounces sold per quarter.

AngloGold Ashanti will continue to operate Navachab until the closing of the transaction.