Randgold Resources Limited was incorporated under the laws of Jersey, Channel Islands in August 1995, to engage in the exploration and development of gold deposits in Sub-Saharan Africa. Their principal executive offices are located at 3rd Floor Unity Chambers, 28 Halkett Street, St. Helier, Jersey, JE2 4WJ Channel Islands. Their agent in the United States is CT Corporation System, 111 Eighth Avenue, New York, New York 10011.
Randgold discovered the Morila deposit during December 1996 and subsequently financed, built and commissioned the Morila mine. During July 2000, they concluded the sale of 50% of their interest in Morila Limited (and also a shareholder loan made by them to Morila Limited) to AngloGold Ashanti for $132 million in cash. They have an 80% controlling interest in Société des Mines de Loulo SA, or Somilo, through a series of transactions culminating in April 2001. The Loulo mine commenced operations in October 2005 and mines the Gara (formerly Loulo) and Yalea deposits. They discovered the Yalea deposit in 1997 and have an 89% controlling interest in Société des Mines de Tongon SA, or Tongon.
In February 2004, they announced they would develop a new mine at Loulo in western Mali. Construction continued through 2005 and the new open pit mine went into production in October 2005. In addition, their board agreed to proceed with the development of the underground mine and, after the award of the development contract, work commenced with the construction of the boxcut at the Yalea mine in August 2006.
They accessed first ore at Yalea in April 2008 with full production beginning in 2010. They commenced development of Loulo’s second underground mine, Gara, in 2010 with first ore scheduled to be delivered to the plant by the second quarter of 2011.
In April 2004, Resolute Mining Limited, or Resolute, acquired the Syama mine from Randgold. Resolute has subsequently paid them $6 million in cash and assumed liabilities of $7 million, of which $4 million owing to Randgold has been settled. The agreement entered into in June 2004 between the parties provides for the payment of a production royalty by Resolute to Randgold, relating to Syama’s production, equal to $10 per ounce on the first million ounces produced by Syama and $5 per ounce on the next three million ounces produced by Syama. This royalty payment is capped at $25 million. Randgold received their first royalties in 2009.
On November 1, 2005, Randgold completed a public offering of 8,125,000 of their ordinary shares, including ADSs (American Depositary Shares), resulting in gross proceeds to them of $109.7 million. The new shares were allocated to institutional shareholders in the United Kingdom, the United States, Canada ad others.
On December 6, 2007, Randgold completed a public offering of 6,821,000 of their ordinary shares, including ADSs, resulting in gross proceeds to them of $240 million. A portion of the proceeds from the offering were used for the development of the Tongon project, and all remaining proceeds used for such organic and corporate opportunities, including possible acquisitions, as might arise.
During 2007, peace initiatives in Côte d’Ivoire continued and Randgold completed a feasibility study which allowed their board to approve the development of the new mine at Tongon subject to the approval of the mining convention by the Côte d’Ivoire Minister of Mines and Energy. Construction of the mine started at the end of 2008 and its first gold was produced in November 2010.
On August 4, 2009, Randgold completed a public offering of 5,750,000 of their ordinary shares, including ADSs, resulting in gross proceeds to them of $341.8 million. The proceeds from the offering are being used to fund the feasibility studies for the Gounkoto and Massawa projects, to develop the Gounkoto, Massawa and Kibali projects, and for other organic and corporate opportunities, including possible acquisitions.
On October 15, 2009, Randgold completed the acquisition of 50% of Moto Goldmines Limited (“Moto Goldmines”), in conjunction with AngloGold Ashanti, which resulted in a 50:50 joint venture control of the Kibali project in the DRC. On December 22, 2009 they completed a further acquisition of a 20% interest, on behalf of the joint venture, from Société des Mines d’Or de Kilo-Moto (“Sokimo”), the parastatal
mining company of the DRC, resulting in an effective interest in the Kibali project of 45%.
During 2010, Randgold completed the feasibility study for the Gounkoto project. The feasibility study is based on a toll treat project whereby the ore is mined and fed through an onsite fixed crusher. The crushed ore is then loaded onto dedicated haul trucks and trucked approximately 25 kilometers to Loulo and fed directly into the Loulo plant. Mining at Gounkoto commenced in January 2011 and processing was anticipated to commence by mid-year 2011.
During November 2009, Randgold completed the sale of their Kiaka gold project to Volta Resources Inc., for $2 million in cash and 20 million Volta Resources Inc. shares. During 2010, they sold 15.5 million Volta Resources Inc. shares for a net profit of $19.3 million. Randgold Resources is reputed to be the most active explorer of gold in sub-Saharan Africa.