Deals in brief

AngloGold receives approval to sell South African assets to Harmony Gold

Global mining firm AngloGold Ashanti has announced that the South African Government has given its ‘unconditional’ approval for the sale of the company's South African assets to exploration and mining firm Harmony Gold.

In February, AngloGold Ashanti signed an agreement to sell its remaining producing assets and related liabilities in South Africa to Harmony Gold for $300m.

The purchase price includes $200m in cash and a deferred payment of up to $100m.

The deferred payment will include $260/oz payable on all underground production sourced within the West Wits mineral rights, in excess of 250,000oz per annum for six years starting from January next year.

The West Wits mineral rights comprise the Mponeng, Savuka, and TauTona mines.

AngloGold Ashanti interim CEO Christine Ramon said: “While the decision to sell our South African assets was not an easy one, we are pleased that the assets are going to Harmony, a capable and responsible operator that will ensure their long-term sustainability.

“We can now sharpen our focus to pursue high-return projects at several of our key assets, deliver new ounces from the world-class Obuasi mine in Ghana, and advance studies in Colombia, a new frontier for our business.”

The transaction is expected to be closed on 30 September, pursuant to which Harmony will take over full ownership and operation of Mponeng mine, Mine Waste Solutions, and all other assets that form part of the deal.

Harmony noted that it will take effective control of the assets from 1 October.

Harmony CEO Peter Steenkamp said: “This is a proud moment for Harmony, further demonstrating our well-established belief in and commitment to the sustainability of gold, our confidence in South Africa and our determination to grow value for all of our stakeholders.”

In May 2019, AngloGold Ashanti unveiled plans to sell all its remaining assets in South Africa, primarily comprising the Mponeng mine, which is claimed to be the world’s deepest gold mine; a surface rock dump processing business, and a mine waste retreatment operation.

The company noted that the sale is part of the process of streamlining AngloGold Ashanti’s portfolio for higher returns.

Caledonia Mining secures $13m for Zimbabwe solar plant

Canada-headquartered gold producer Caledonia Mining has raised $13m via the sale and issue of 597,963 shares in the company. The proceeds from the sale will be used to invest in the construction of a solar power plant to supply electricity to Caledonia’s primary asset, the Blanket mine in Zimbabwe.

US DoE selects Albemarle to partner on lithium research projects

US company Albemarle has been selected by the US Department of Energy (DoE) as a ‘critical partner’ for two lithium research projects.

The partnership will continue for three years through a Battery Manufacturing Lab Call.

Metals & mining industry M&A deals in July 2020 total $22.58m in US

Total metals & mining industry M&A deals in July 2020 worth $22.58m were announced in the US, according to GlobalData’s deals database.

The value marked a decrease of 33.1% over the previous month and a drop of 96.2% when compared with the last 12-month average of $596.19m.

Canada’s metals & mining industry sees a rise of 85.4% in deal activity in July 2020

Canada’s metals & mining industry saw a rise of 85.4% in overall deal activity during July 2020, when compared with the last 12-month average, according to GlobalData’s deals database.

A total of 76 deals worth $292.85m were announced in July 2020, compared to the 12-month average of 41 deals.

Metals & mining industry M&A deals in July 2020 total $2.07bn globally

Total metals & mining industry M&A deals in July 2020 worth $2.07bn were announced globally, according to GlobalData’s deals database.

The value marked a decrease of 8.3% over the previous month and a drop of 43.2% when compared with the last 12-month average, which stood at $3.65bn.

Metals & mining industry deals in July 2020 total $2.13bn globally

Total metals & mining industry deals for July 2020 worth $2.13bn were announced globally, according to GlobalData’s deals database.

The value marked a decrease of 37.4% over the previous month and a drop of 48.4% when compared with the last 12-month average of $4.12bn.