Global mining firm AngloGold Ashanti has signed an agreement to sell its remaining producing assets and related liabilities in South Africa to gold exploration and mining firm Harmony Gold for $300m.

The purchase price includes $200m in cash and a deferred payment of up to $100m.

The deferred payment will include $260/oz payable on all underground production sourced within the West Wits mineral rights, in excess of 250,000oz per annum for six years starting from January 2021.

The West Wits mineral rights comprise the Mponeng, Savuka and TauTona mines.

In May 2019, AngloGold Ashanti unveiled plans to sell all its remaining assets in South Africa, primarily comprising the Mponeng mine, which is claimed to be the world’s deepest gold mine; a surface rock dump processing business and a mine waste retreatment operation.

The company noted that the sale is part of the process of streamlining AngloGold Ashanti’s portfolio for higher returns.

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AngloGold Ashanti CEO Kelvin Dushnisky said: “From the beginning of the process an objective has been to sell our South Africa assets to a strong, capable and responsible operator that will ensure their long-term sustainability; we believe that this transaction achieves that.

“This sale helps deliver on our commitment to sharpening our management focus and capital allocation on the highest return investment options available to us.”

In a separate statement, Harmony Gold said that the acquisition will integrate Mponeng and Mine Waste Solutions into the company’s portfolio.

The acquisition also enables Harmony Gold to improve its overall recovered grade and cash flow margins.

It adds approximately 350,000oz per annum and increases Harmony’s South African reserves by 8.27Moz, excluding Mponeng reserves.