Minorco S.A. - Re Agreement

RNS No 7070e
MINORCO S.A.
7th December 1998


MINORCO, ANGLOGOLD REACH AGREEMENT IN PRINCIPLE ON MINORCO'S GOLD INTERESTS

Minorco and AngloGold have reached an agreement in principle, in terms of
which AngloGold will purchase Minorco's gold interests for US$550 million
cash.

The purchase price is subject to an adjustment for net current assets and long
term debt, as at 31 December 1998.  

The agreement in principle follows the completion of a competitive auction
process which involved a number of interested parties.  It began earlier this
year after a review by Minorco of its options to maximise the potential and
value of its gold assets.

The Minorco gold interests include:

* wholly owned Independence Mining Company (IMC), which incorporates Pikes
Peak Mining Company in Colorado and a 70 per cent stake in the Jerritt Canyon
Joint Venture in Nevada, USA;

* the wholly owned Mineracao Morro Velho mines and a 50 per cent joint venture
in the Mineracao Serra Grande mines, both in Brazil;

* a 46.25 per cent stake in the Cerro Vanguardia mine in Argentina; and

* gold exploration activities in the Americas.

Minorco's gold operations currently produce some 800,000 attributable ounces a
year.  The acquisition of these operations will increase AngloGold's annual
output by 12 per cent to 7.5 million attributable ounces.

Commenting on the sale, Minorco CEO Hank Slack said: "This is a favourable
transaction for Minorco.  The sale price puts a value on Minorco's gold assets
which in the past was not reflected in our share price and will enable Minorco
to reduce its debt levels accordingly".

AngloGold CEO Bobby Godsell said: "We are confident that these new assets will
enhance AngloGold and add value for shareholders. This represents one
important step towards our becoming a globally active gold company."

The agreement in principle is subject to the signing of a final agreement and
the fulfilment of certain conditions precedent, including the approval of the
respective boards of directors, AngloGold shareholders and various regulatory
authorities.

Contact:

Minorco                                        AngloGold
Nick von Schirnding                            James Duncan 
VP Investor and Corporate Affairs              Corporate Communications       
                                                    Executive Officer
[phone]                               [phone]

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