AngloGold Sells U.S. Mine to Newmont for $820 Million

By Ian Walker

LONDON--AngloGold Ashanti Ltd. (ANG.JO) said Tuesday it is selling its Cripple Creek & Victor mine in the U.S. to Newmont Mining Corporation (NEM) for $820 million in cash, plus a net smelter return royalty.

The South African based global gold mining company said the money raised from the sale will strengthen its balance sheet and allow it to implement a deleveraging strategy to lower financing costs. It will also no longer have to fund the remaining capital of $200 million required to complete the mine-life extension 2 project, further improving its free cash flow position.

"Our focus continues to be on creating a long-term, high-margin gold portfolio," Chief Executive Srinivasan Venkatakrishnan said. "Our two new operations are going from strength to strength, our core cash-generating mines continue to perform well and we're getting a strong tailwind from lower oil prices and weaker currencies--all while keeping our long-term options intact," the CEO said.

-Write to Ian Walker at [e-mail]; @IanWalk40289749

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