anglogold on the prowl - aussie miners look out

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    JOHANNESBURG, Dec 17 (Reuters) - South Africa's AngloGold said on Tuesday it had filed a shelf registration statement with the U.S. Securities and Exchange Commission to enable it to issue up to $600 million of securities which could help it fund acquisitions.

    It said in a statement that the shelf registration would allow AngloGold (AU:AGG) , which is one of the world's biggest bullion miners, to undertake one or more offerings from "time to time".

    "AngloGold plans to add the net proceeds from the sale of any securities pursuant to this shelf registration statement to its general funds, and to use these proceeds for working capital or general corporate purposes or to fund any potential future acquisitions," it said.

    "AngloGold may also apply these proceeds to reduce its short-term or other debt."

    AngloGold said the issuance and sale of any securities would also be subject to approval by the South African Reserve Bank.

    It said its wholly owned subsidiary, AngloGold International Holdings SA, could also offer debt securities under the shelf registration statement which would be guaranteed by AngloGold.

    "AngloGold and AngloGold International Holdings SA may not issue and sell any securities pursuant to the shelf registration statement until the shelf registration statement is declared effective by the Securities and Exchange Commission," it said.

    "The amount, type and price of the securities offered at any given time, and the names of underwriters, if any, will be determined at the time of the offering."

    AngloGold produces about six million ounces of gold annually from its operations in Africa, Australia, North America and South America.

    -If you are a LSG shareholder, it is interesting to note that AngloGold owns a 10.6% in EAGM, and might decide to take it out, particularly if resources keep increasing at the rate that they have. (atm resources stand at 4m/oz). What's the link with LSG?

    Well, LSG owns directly a 11% stake in EAGM and consistent with its venture capital role, is happy to sell if offered a good price. EAGM represents possibly the flagship investment for LSG and at these gold prices EAGM is imo worth about A$500M or just over 50cps to LSG.
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