UPDATE 4-AngloGold adj earnings up, seeks $1.6 bln via rights

(Adds CEO comment on power crisis, updated share price)

By James Macharia

JOHANNESBURG, May 6 (Reuters) - South Africa's AngloGold Ashanti Ltd (ANGJ.J: Quote, Profile, Research, Stock Buzz), the world's third biggest gold producer, posted a jump in earnings and plans to raise around 11.9 billion rand ($1.6 billion) through a rights offer of shares.

The mining group said on Tuesday it would issue about 69.4 million new shares and use the cash to reduce its forward sales and increase exposure to the spot price of gold as well as funding new mines, mine development and exploration.

AngloGold posted 37 U.S. cents in first-quarter adjusted headline earnings per share versus 6 U.S. cents in the prior quarter to end-December, reflecting accounting adjustments and a higher gold price, even as output fell due to a power crunch.

Shares in the group initially fell around 5 percent on fears the rights issue would dilute its shares but recovered as the market digested the results, plans to cut its hedge book and news of a gold find in Colombia.

AngloGold was up 9.26 percent at 287.36 rand in late afternoon trade on the Johannesburg Stock Exchange.

"The market was surprised by the rights issue, and some of the numbers were negative - production was lower, the hedge book is still a big problem, but after wading through the numbers, their new find in Colombia helped the share," Roy Lamb, a trader at Investec Securities said.

AngloGold announced a "significant" find of 12.9 million ounces of gold at its La Colosa project in Colombia.