AngloGold Ashanti announced on Monday that it is selling its Namibian mining unit to private mining group QKR.

“The agreement provides for an upfront consideration based on an enterprise value of $110-million which will be adjusted to take into account AngloGold Ashanti Namibia’s (AGAN’s) net debt and working capital position on the closing date of the transaction,” AngloGold said in a statement.

According to a report on Eyewitness News, the deal is subject to regulatory approval in South Africa and Namibia and is expected to take several months to go through.

The move is part of a renewed drive to rationalise and focus on its bigger operations.

“We are executing on our strategy to focus our efforts on assets of scale that drive value in the business,” AngloGold Ashanti executive vice president of strategy and business development Charles Carter was quoted in a Fin24 report.

“We’re pleased to have reached agreement to sell Navachab for fair value in the midst of a difficult market. We believe that QKR is the right group to take Navachab forward.”