South African miner AngloGold Ashanti has begun proceedings to issue approximately 7.8 million ordinary shares in order to fund its proposed acquisition of a 50% indirect interest in Moto Goldmines.

The offering is expected to garner proceeds of approximately $284m, the miner said.

The company has filed a preliminary prospectus supplement with the United States Securities and Exchange Commission to issue AngloGold Ashanti ordinary shares and American depositary shares representing ordinary shares.

The shares have been fixed at $36.97 per ordinary share and $37.25 per ADS, which denotes a 3% discount to the closing price on 31 August on NYSE.

The proceeds will help finance the firm’s purchase of 50% indirect stake in Moto, as declared on 16 July, which covers the miner’s 50% stake in other liabilities related to the acquisition.

The closing date for the offering is 8 September.