UPDATE: AngloGold To Raise $284 Million To Fund Moto Acquisition

AngloGold Ashanti Ltd. (AU), the world's third-largest producer of the precious metal, Tuesday said it expects to raise about $284 million through an offering of new shares to fund the planned acquisition of a 50% stake in Moto Goldmines Ltd. (MGL.T).

The Johannesburg-based company said some 7.62 million shares will be offered, priced at 288.32 rand an ordinary share and $37.25 an American depositary share, which will represent ordinary shares.

The price represents a discount of roughly 3% to the closing price on the New York Stock Exchange Monday and AngloGold said the offering is scheduled to close Sept. 8. UBS is acting as sole bookrunner.

AngloGold and Africa-focused gold producer Randgold Resources Ltd. (GOLD) in July joined forces to buy Moto, whose main asset is a project under development in Congo.

Perth, Australia-based Moto last month accepted an offer from Randgold that values it at about $500 million, topping a rival bid from Vancouver-based Red Back Mining Inc. (RBI.T). Randgold, which is focused on gold mines in west Africa, has separately agreed to subsequently sell 50% of Moto to AngloGold for $244 million.

AngloGold said the net proceeds from the offering would fund the purchase of the stake, including certain other liabilities and expenses.

At 0808 GMT, AngloGold's shares were trading 2.5% lower at 290.61 rand, while Johannesburg's gold mining subindex was down 1.7%.

-By Robb M. Stewart, Dow Jones Newswires; [phone]; [e-mail]