AngloGold buys Sao Bento Mine

Vancouver – AngloGold Ashanti (AU-N) will get Eldorado Gold‘s (ELD-T) Sao Bento Mine in Brazil, now on care and maintenance, for US$70 million worth of AngloGold shares tradeable on the New York Stock exchange.

AngloGold wants the property for its metallurgical infrastructure which it will use to treat ore from its nearby Corrego do Sitio Gold project.

As part of the deal Eldorado gets a right of first refusal over the next three years on any potential resale of the mine by AngloGold.

On the same day, July 30, Eldorado also announced it had acquired 10% of Brazauro Resources (BZO-V) shares for $8.4 million. Eldorado purchased 8.8 million units, with each unit comprising a common share at 95 and one half warrant exercisable at $1.30. If it exercises the warrants which are each worth one common share it will own 16% of Brazauro.

Eldorado says it acquired the shares for investment purposes.

On the news Eldorado’s share price gained 23 to close at $8.03. Brazauro gained 2.5 to close at 44.5.


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