AngloGold Ashanti (AU) To Acquire Golden Cycle Gold (GCGC)

January 14, 2008 10:10 AM EST

AngloGold Ashanti (NYSE: AU) agrees to acquire 100% of Golden Cycle Gold Corporation (NYSE: GCGC), through a merger transaction in which GCGC's shareholders will receive consideration consisting of AngloGold Ashanti ADSs which, as of a recent date, represented aggregate consideration of approximately US$149 million.

Under the Transaction, it is proposed that each share of GCGC's common stock will be converted into the right to receive AngloGold Ashanti ADSs on the basis of an exchange ratio of 29 AngloGold Ashanti ADSs per 100 shares of GCGC's common stock. Based upon the closing price of AngloGold Ashanti ADSs as traded on the NYSE on Friday, January 11, 2008 of US$49.59, this exchange ratio represents an offer price of US$14.38 per share of the Company's common stock and an aggregate transaction value of US$149 million, based on 10.35 million shares outstanding on a fully diluted basis.

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