World number two miner, South Africa’s AngloGold, has received payment from Tanami Gold NL as consideration for the purchase of the Western Tanami Project in Australia, AngloGold announced on Tuesday.
Tanami Gold has made a cash payment of AU$3,75-million and issued 25-million fully paid ordinary shares to AngloGold to complete the transaction.
This follows an initial payment of Aus$250 000 when the companies signed a heads of agreement on November 24, 2003. AngloGold is now Tanami Gold’s largest shareholder, with 10,25% of the company’s ordinary shares.
Under the terms of the agreement, Tanami Gold will make a further payment of AU$5-million within 120 days of Friday January 16, 2004.
The company has also agreed to the payment of a royalty to AngloGold. The Western Tanami Project, located in the Tanami Desert in Western Australia, includes the Coyote deposit where Tanami Gold is currently undertaking a detailed review of all technical data and an inspection of drill core with a view to starting a drilling program in the March 2004 quarter. – I-Net Bridge