Johannesburg - Africa's biggest gold miner AngloGold Ashanti [JSE:ANG] said on Friday it would acquire a 19.79% stake in Canadian gold and uranium producer First Uranium Corporation [JSE:FUM] for $30m.
AngloGold said it would buy the stake, which consists of 47 million shares and priced at $0.64 a share, from Village Main Reef Gold Mining Company [JSE:VIL].
"The acquisition was effected by AngloGold Ashanti for investment purposes," it said in a statement.
The company added it could acquire additional First Uranium shares.
Village said in a separate statement the proceeds of the purchase will be used to pay its debts.
Village has granted lock-up rights and rights of first refusal to AngloGold Ashanti for its remaining 5.7% stake in First Uranium.
Shares in AngloGold were down slightly in early trade in Johannesburg in a mostly flat bourse.
AngloGold said it would buy the stake, which consists of 47 million shares and priced at $0.64 a share, from Village Main Reef Gold Mining Company [JSE:VIL].
"The acquisition was effected by AngloGold Ashanti for investment purposes," it said in a statement.
The company added it could acquire additional First Uranium shares.
Village said in a separate statement the proceeds of the purchase will be used to pay its debts.
Village has granted lock-up rights and rights of first refusal to AngloGold Ashanti for its remaining 5.7% stake in First Uranium.
Shares in AngloGold were down slightly in early trade in Johannesburg in a mostly flat bourse.