16th Sep 2015 14:45
LONDON (Alliance News) - Randgold Resources Ltd said Wednesday it has inked an investment agreement with AngloGold Ashanti Ltd with the aim of forming a joint venture to redevelop and operate AngloGold's Obuasi gold mine in Ghana.
Under the agreement Randgold will lead and fund a development plan to rebuild the mine. Randgold said the mine is a large, high-grade deposit with proven and probable ore reserves of 24.53 metric tonnes at 6.70 grams per tonne, making for 5.29 million ounces of gold.
If the development plan meets both of the companies investment criteria, and assuming all other conditions are satisfied, the two will form a new joint venture company. They will be jointly responsible for funding the redevelopment of the mine in line with the agreed development plan.
Randgold said that a Randgold group entity will be appointed as the operator of the mine, and both companies will appoint an equal number of directors to the board of the joint venture company.
"Obuasi is a world-class resource. We now have to see if we can convert it into a world-class mine. We have a long history of cooperation with AngloGold Ashanti, and we look forward to working with them again on charting a new course towards a viable future for Obuasi," said Randgold Chief Executive Mark Bristow in a statement.
Shares in Randgold were up 3.2% at 3,741.00 pence Wednesday afternoon.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
Copyright 2015 Alliance News Limited. All Rights Reserved.
Related Shares:
Randgold Resources