South Africa: Anglogold Seeks 100 Percent of Cripple Creek

Business Day (Johannesburg) ^ | 15 Jan 2008 | Charlotte Mathews

[VxH]

South Africa: Anglogold Seeks 100 Percent of Cripple Creek
15 January 2008
Charlotte Mathews

 

GLOBAL gold producer AngloGold Ashanti was offering to buy Golden Cycle Corporation, its co-shareholder in the Cripple Creek & Victor Gold Mining Company in the US, for $149m in shares, the companies said yesterday.

The transaction would increase AngloGold's ownership to 100% of Cripple Creek, its only US operation, from 67% previously, although it had a 100% interest in the mine's production until the initial loan it made to the joint venture was repaid. At the end of September the outstanding value of the loan was $336m.

"Successful completion of this transaction will enable us to consolidate the full mineral endowment at CC&V over the remainder of the mine's life, while simplifying the ownership of this long-life North American asset," said AngloGold executive vice-president Richard Duffy.

AngloGold has acceptances from 44% of Golden Cycle shareholders to the deal, and needs a two-thirds vote in support. It is offering 29 of its American d epositary s hares, listed on the New York Stock Exchange (NYSE), for every 100 Golden Cycle shares held, a 29% premium to the 30-day volume weighted average price of Golden Cycle's shares on the NYSE Arca exchange, an online exchange for trading shares and options.

AngloGold and Golden Cycle entered into a joint venture over Cripple Creek in 1991. Golden Cycle provided the land and AngloGold the loan financing. In 2006, Cripple Creek produced 283000oz of gold, which was 5% of AngloGold's total production, at a cost of $248/oz.

[VxH]

Weakened dollar makes American assets cheap?

[cripplecreek]

My ass is NOT cheap.

[Mr. Brightside]

Boy, you get around.

[VxH]

[My ass is NOT cheap.]

Given the considerable acreage involved, one would certainly hope so.   ;-}

 

 

[cripplecreek]

Too many claims have been steaked already.

[VxH]

>>Given the considerable acreage involved

In the transaction referenced by the article, I mean.

[VxH]

>>Too many claims have been steaked already. Rumors of a mother-lode within. Could be quite a deposit.

[VxH]

>>Too many claims have been steaked already.

Rumors of a mother-lode within. Could be quite a deposit.

[skeptoid]

. . .have been steaked already.

As opposed to cubed, sliced or coarsely ground?

[squidly]

Weakened dollar makes American assets cheap?

The dollar isn't weak against the rand. It's been a better rate in the past, but still not weak.

[VxH]

Cecil Rhodes, founder of De Beers, must be smiling down in hell.

 

"The idea gleaming and dancing before ones eyes like a will-o-the-wisp at last frames itself into a plan. Why should we not form a secret society with but one object, the furtherance of the British Empire, for the bringing of the whole uncivilized world under British rule, for the recovery of the United States, for the making [of] the Anglo-Saxon race but one Empire . . . .[20]  --- Cecil Rhodes

Cecil Rhodes acquired the major gold and diamond mines of southern Africa and used his wealth to pursue his dream. In 1891, he established a secret society. When he realized that he wouldn't live to see his vision fulfilled, he left his vast fortune to the Rhodes Trust to fund his secret society and the Rhodes Scholarship Fund.[21]"

 

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Anglo American - De Beers Diamonds, Anglo Platinum, Coal Copper Nickel Zinc, Mineral Sands

  Stock Symbol AAL (London), AAUK (ADR), AGL Africa

20 Carlton House Terrace   London (UK) SW1Y 5AN

Phone:	44 20 7968 8888
Fax:	44 20 7968 8500

  www.angloamerican.co.uk

Company Description

Anglo Amercan $32 Billion US Dollar revenue, 195,000 employees 45% ownership De Beers Diamonds 42% owns AngloGold Ashanti, 75% owner Angloplatinum, World's largest Diamonds 40% market share Mining metals Copper, Zinc, Nickel, Carbon Steel, Iron Ore.

http://209.85.207.104/search?q=cache:goYDQ6DmqP4J:www.medibix.com/Redirector/company/company_id/10006355+%22De+Beers%22+Ashanti&hl=en&ct=clnk&cd=3&gl=us

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[Comparative Advantage]

“Cecil Rhodes, founder of De Beers, must be smiling down in hell.”

Kind of judgmental, don’t you think?

[VxH]

[Kind of judgmental, don’t you think?]

I see no epiphany in the homosexual architect of apartheid’s behavior to make me believe he was headed in any other direction.

[Cuttnhorse]

I just last night finished reading “Men of Men” by Wilbur Smith...good novel on the finding and development of the Rhodes empire.

[x1stcav]

Nah, they’re going for an extension of their use permit to continue operations beyond 2012. My guess is it has something to do with streamlining the capital structure as they’re getting ready to pump a big amount of cash into the operation.