JOHANNESBURG Feb 10 Africa's top bullion producer AngloGold Ashanti is selling its Namibian unit for $110 million to private mining group QKR, it said on Monday, the disposal being part of a renewed drive to rationalise and focus on its bigger operations.
"The agreement provides for an upfront consideration based on an enterprise value of $110 million which will be adjusted to take into account AngloGold Ashanti Namibia's (AGAN's) net debt and working capital position on the closing date of the transaction," AngloGold said in a statement.
The deal is subject to regulatory approvals in Namibia and South Africa and is expected to take several months to complete.
AGAN operates the Navachab mine, which is a small but relatively low-cost operation, producing 46,000 ounces in the nine months to the end of September last year at a cash cost of $755 per ounce.
"We are executing on our strategy to focus our efforts on assets of scale that drive value in the business," said Charles Carter, AngloGold's executive vice president of strategy and business development.
For the minerals-rich southwestern African nation of Namibia, the transaction represents a renewed commitment by a foreign investor in its mining industry.
For QKR the deal is its first acquisition and reflects a growing interest in African resources by private capital and equity investors. (Reporting by Ed Stoddard; Editing by Greg Mahlich)