- AngloGold Ashanti (NYSE:AU) is gearing up to buy Centamin (TSX:CEE) in a stock and cash deal valued at US$2.5 billion
- Centamin shareholders will receive 0.06983 AngloGold shares for each Centamin share in addition to $0.125 in cash
- The acquisition of Centamin will expand Anglogold Ashanti’s operations in Africa
- Shares of AngloGold Ashanti are down 7.12 per cent to US$26.75 as of 10:40 am ET while Centamin shares are up 23 up 23 per cent to C$2.62 as of 10:47 am ET
AngloGold Ashanti (NYSE:AU) is gearing up to buy Centamin (TSX:CEE) in a stock and cash deal valued at US$2.5 billion.
In a news release, it was revealed that Centamin shareholders will receive 0.06983 AngloGold shares for each Centamin share in addition to $0.125 in cash.
The acquisition of Centamin will expand Anglogold Ashanti’s operations in Africa thanks to Centamin’s flagship Tier 1 asset is the Sukari gold mine that is Egypt’s largest gold mine, as well as one of the world’s largest producing mines.
Since production began in 2009, Sukari has produced more than 5.9 million ounces of gold and annually produces roughly 450,000 ounces.
Thanks to the acquisition, this will put AngloGold Ashanti’s annual gold production to more than 3 million ounces and effectively make it the fourth largest gold producer in the world by volume behind only Newmont (TSX:NEM), Barrick Gold (TSX:ABX) and Agnico Eagle Mines (TSX:AEM).
Once the acquisition is complete, AngloGold Ashanti shareholders will own approximately 83.6 per cent and Centamin shareholders will own approximately 16.4 per cent of AngloGold Ashanti’s enlarged issued share capital.
AngloGold Ashanti’s acquisition of Centamin will expand its presence into nine other countries such as the United States, Brazil, Argentina, Colombia and Australia and across other countires in Africa such as Tanzania, the Democratic Republic of Congo, Ghana and Guinea.
Based out of the United Kingdom, Anglogold Ashanti is a global gold mining company with a diverse portfolio of operations, projects and exploration activities across nine countries on four continents.
Centamin is a gold producer with its assets including the Sukari Gold Mine, Doropo Gold Project and ABC Project. The Sukari is a bulk tonnage open pit and a high-grade underground operation with significant exploration upside.
Shares of AngloGold Ashanti (NYSE:AU) are down 7.12 per cent to US$26.75 as of 10:40 am ET while Centamin (TSX:CEE) shares are up 23 up 23 per cent to C$2.62 as of 10:47 am ET.
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