Ausdrill in $213m AngloGold deal

Ausdrill says it has entered into a non-binding $US150 million ($A213 million) agreement with AngloGold Ashanti for drilling and blasting services at its Geita gold mine in Tanzania.

The announcement is below:

Ausdrill Limited (ASX: ASL) has received a Letter of Intent from AngloGold Ashanti (AGA) regarding the supply of drilling and blasting services to the value of US$150 million over 5 years at the Geita Gold Mine in Tanzania. This project is of similar size to the Kalgoorlie Super Pit where Ausdrill has been continuously operating for 20 years.

The non-binding Letter of Intent sets out the intention of the Parties in that Ausdrill as a prospective supplier of production drilling and blasting services will be carrying out certain scoping activities, planning, preparatory and ancillary works where after the Parties intend to enter into a Production Drilling and Blasting Contract for the Surface Mining Operation.

The contract will be an extension to the established relationship Ausdrill already has with AGA at the Yatela Gold Mine in Mali.