JOHANNESBURG — South Africa-based gold miner AngloGold Ashanti Ltd. said Thursday that it offered to sell 390,000 square meters of undeveloped land next to its Savuka mine for 35 million rand to Blyvooruitzicht Gold Mining Co., a subsidiary of DRDGold Ltd. .
The deal is subject to regulatory approval.
DRDGold said Blyvoor was struggling with funding but mining the area offered by AngloGold would provide enough cash flow to continue operating. The miner in April said it plans to sell the operation.
AngloGold said the area it is selling wasn’t being used and isn’t part of its growth plans.
The sale comes against the backdrop of a nationalization debate taking place in South Africa, which is deterring new investment in the country’s mining sector.
“We believe that there may be potential for Blyvoor to generate significant free cash flow by mining the Savuka ground, which will help to restore its ‘going concern’ status, an important consideration for prospective lenders and suitors,” DRDGold Chief Executive Niel Pretorius said.
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