Feb. 10 (Bloomberg) -- QKR Corp., a mining investor founded by former JPMorgan Chase & Co. banker Lloyd Pengilly, agreed to buy a Namibian gold mine from AngloGold Ashanti Ltd. for $110 million in its first acquisition.
In addition to the cash payment, the world’s third-largest gold producer will receive a quarterly royalty covering 2 percent of the ounces sold from Navachab’s smelter for seven years, the Johannesburg-based company said in a statement today.
Open-pit Navachab, about 170 kilometers (106 miles) northwest of the capital Windhoek, produced 74,000 ounces of gold in 2012 and 46,000 ounces in the nine months through September 2013, AngloGold said. Overall, the company produced 1.04 million ounces of gold in the three months ended September.
Some of the world’s largest mining companies are selling assets to cut costs after the global economic slowdown eroded growth in commodity demand, dragging down prices. AngloGold, with 21 operations in 10 countries, scrapped its dividend in August and is cutting jobs and spending to weather a decline in the price of bullion. Gold plunged 28 percent in 2013 and has risen about 5.8 percent this year to $1,275.52 an ounce.
“We are executing on our strategy to focus our efforts on assets of scale that drive value in the business,” said AngloGold Executive Vice-President of Strategy and Business Development Charles Carter.
Bloomberg News reported Feb. 5 that AngloGold and QKR were close to an agreement on Navachab.
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