Johannesburg - AngloGold Ashanti announced on Tuesday that it had closed its sale of the Cripple Creek & Victor mine in the United States to Newmont Mining for $820 million (R10.4 billion) in cash, plus a net smelter return royalty.
When it announced the deal on June 8, AngloGold Ashanti said the proceeds would be used to cut debt at the company, which would also no longer have to fund the remaining approximately $200 million required to complete the life extension project at the mine in central Colorado.
AngloGold Ashanti’s chief executive Srinivasan Venkatakrishnan said at the time: “This deal significantly de-risks the balance sheet without diluting our shareholders, and places us in a much stronger position. It puts $820 million into our bank account, saves $200 million in capital expenditure, and gives us continued exposure to the asset through an uncapped royalty on future underground production.”
ANA