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Wednesday, 20th July 2005 (6470 views)

Aflease has moved another step closer to its aim of increasing gold assets with the purchase of a mothball mine from AngloGold Ashanti.<br/><br/>The South African mining company have announced that they will be buying the Weltevreden mine through the issue of $11.17 million dollars worth of their shares to AngloGold.<br/><br/>At the moment this is considered a good price, since shares are currently trading above the transaction price.<br/><br/>Whilst this may not be a material deal for South Africa’s biggest gold-miner, a spokesperson for AngloGold has suggested that acquiring a stake in Aflease increases the company’s exposure to uranium. <br/><br/>Development of the Weltevreden mine began in 1990 but it was placed on a care-and-maintenance basis when the gold price fell.<br/><br/>According to the agreement, Aflease will buy those portions of Weltevreden that lie near the surface, leaving AngloGold Ashanti to mine the deeper levels. <br/><br/>The asset has an indicated gold resource of 3.194 million ounces grading at 4.75 grams per ton. <br/><img alt="track" src="http://feeds.directnews.org.uk/feedtrack/dn.gif?feedid=196&itemid=15007754"/>

 

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