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AngloGold Ashanti Acquires Stake In Colorado-Based Mining Co |
| AngloGold Ashanti Limited and Golden Cycle Gold Corporation (GCGC), a mining group have gone into a merger. It took effect yesterday. |
According to an AngloGold release issued yesterday, shareholders of GCGC approved the merger with a wholly owned subsidiary of AngloGold Ashanti at the GCGC special meeting of shareholders held last Monday in Victor, Colorado when GCGC shareholders representing 7,036,949 shares of GCGC common stock voted in favour of the merger.
As a result, AngloGold Ashanti will acquire 100 per cent of GCGC by way of a statutory merger under Colorado law and subsequently, AngloGold Ashanti will own 100 per cent of Cripple Creek and Victor Gold Mining Company (CC&V).
The Bank of New York, c/o BNY Mellon Shareowner Services, New York, has been appointed as exchange agent for the merger, and notice and exchange instructions are expected to be mailed to the shareholders of GCGC on or before July 3, 2008.
R. Herbert Hampton, Chief Executive Officer and president of GCGC, commented, "We are pleased that shareholders representing approximately 71.85 per cent of our common stock have expressed their confidence in AngloGold Ashanti by approving the merger. This concludes the long history of Golden Cycle, and we look forward to beginning a new chapter as shareholders of AngloGold Ashanti."
Commenting on the transaction, Mark Cutifani, Chief Executive Officer of AngloGold Ashanti, said: "We are extremely pleased that Golden Cycle shareholders have approved the transaction that will enable us to continue to consolidate the full mineral endowment at CC&V over the remainder of the mine’s life, whilst also simplifying the ownership structure of this long life North American asset, and we welcome Golden Cycle shareholders as new shareholders of AngloGold Ashanti."
AngloGold Ashanti is a global gold producer with 21 operations on four continents, a substantial project pipeline and an extensive, worldwide exploration programme.
The company is listed on the New York, Johannesburg, Ghanaian, London and Australian stock exchanges, as well as the Paris and Brussels bourses.
AngloGold Ashanti is committed to continuously improving the performance of current assets through cost management and increased labour productivity, as well as by seeking out value-adding growth opportunities through exploration and a disciplined acquisition strategy.
GCGC, on the other hand, discovers, develops, and mines precious metal properties. The company’s primary mining operation consists of its participation in Cripple Creek & Victor Gold Mining Company, a joint venture with AngloGold Ashanti.
The joint venture involves gold mining activity in the Cripple Creek area of Colorado.
Meanwhile, AngloGold said yesterday it had sold its 50 per cent stake in Nufcor International to U.S.-based utility Constellation Energy Group.
The world’s third-biggest gold producer said it would continue to receive the services of Nufcor through an agency agreement.
Constellation becomes the 100 per cent owner of Nufcor as a result of the transaction. The remaining 50 per cent of the shares of Nufcor had been sold to Constellation by FirstRand, AngloGold said.
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