AngloGold Ashanti to acquire 100% of São Bento

AngloGold Ashanti Limited, a global gold producer with 21 operations on four continents, has entered into a letter agreement with Eldorado Gold Corporation to acquire 100% of Eldorado’s wholly owned subsidiary, São Bento Mineração S.A. (SBMSA) for a consideration of US$70 million to be settled by the issue of AngloGold Ashanti shares to Eldorado.

SBMSA is located in the immediate vicinity of AngloGold Ashanti’s proposed Córrego do SÍtio Mine, which is part of AngloGold Ashanti Mineracão Ltda and is located in the municipality of Santa Bárbara, Iron Quadrangle region of Minas Gerais State, Brazil.

São Bento started its operations in 1986 and operated until January 2007, at which time São Bento’s process plant and facilities were placed on care and maintenance.

At Córrego do SÍtio, AngloGold Ashanti is currently investigating the viability of exploiting the potential sulphide ore resources of the Córrego do SÍtio underground ore bodies. Underground development to further access and explore these ore bodies, as well as trial mining, is in progress.

Ron Largent, Executive Vice President America’s, said the São Bento assets have the potential to double the scale, and therefore significantly enhance the potential, of the Córrego do SÍtio project. As such AngloGold Ashanti’s annual gold production from Brazil could increase by some 200,000 ounces.

The acquisition of São Bento forms an important contributor to the growth of our Brazilian operations and further enhances the position of AngloGold Ashanti in Brazil’s Iron Quadrangle, concluded Mr. Largent.