OWN CORRESPONDENT, Accra | Wednesday 1.50pm
ASHANTI Goldfields of Ghana has reached an agreement with shareholders and the Ghanaian government, clearing the way for the sale of 50% of Geita Tanzanian mining company, the company said on Wednesday.
Ashanti, facing severe financial problems, has estimated that the mine, expected to be fully operational later this year, will produce half a million ounces of gold a year.
The sale of a 50% stake could raise more than $200-million towards financing the project. Wednesday’s announcement followed a meeting late on Tuesday that was convened after a high court ruling in favour of Ashanti shareholders who sought to remove the board, blamed for disastrous financial decisions after the price of gold surged at the end of last year.
In a statement issued through the London stock market, the company said that a memorandum of understanding has been reached with the Ghanaian government, which owns 20% of Ashanti, Lonmin and Adryx Mining of Brfitain and Metals Limited of Luxembourg.
Lonmin, together with Canadian Barrick Gold and Placer Dome, have been named as possible bidders for a 50% stake in Geita. The stock market statement said that the parties had agreed that Lonmin and Adryx, a minority shareholder, will make an application to the high court to lift an earlier order restraining Ashanti from entering into financing arrangements.
A further high court ruling was expected, perhaps later on Wednesday, a company source said. — AFP