AngloGold Ashanti sells Alaska properties

South Africa's AngloGold Ashanti has signed a letter of intent with Vancouver-based International Tower Hill Mines for the sale and option of all of AngloGold's Alaska mineral exploration properties and associated databases to the Canadian company. Under the terms of the agreement, AngloGold will sell ITH a 100 percent interest in six Alaska properties (Livengood, West Pogo, Coffee Dome, Gilles, Caribou and Blackshell) covering a total of 246 square kilometers.

In consideration for the sale, ITH will issue to AngloGold 19.99 percent of its issued shares following the acquisition and the completion of equity financing to raise a minimum of $10 million for future exploration activities. ITH will also have the exclusive option to acquire a 60 percent interest in AngloGold's Terra and Lost Mine South properties, also in Alaska, by incurring $3 million of exploration expenditure on each project within four years of the grant date of the option.

"The sale and option of our Alaskan mineral properties to ITH is in line with our objective of focusing our own greenfields exploration activities on other quality opportunities globally," said Richard Duffy, AngloGold's executive officer for business development. "Whilst Alaska remains highly prospective for the discovery of new gold mines, our commitment in countries such as the DRC, Colombia and Australia limits our ability to optimally develop these Alaskan projects."

AngloGold's Alaska properties are all in the area around Fairbanks and Delta Junction, apart from the Terra property, which is 200 kilometers west of Anchorage.