21st Dec 2015 07:11
LONDON (Alliance News) - Randgold Resources Ltd on Monday said it has terminated a deal with AngloGold Ashanti Ltd whereby the pair were set to redevelop a mine in Ghana.
Randgold and AngloGold were set to form a joint venture to redevelop the Obuasi mine in Ghana, but on Monday Randgold said the development plan for the mine was unsatisfactory, leading it to terminate the investment agreement between the two companies.
"After undertaking a due diligence exercise into the mine and the redevelopment opportunity the mine affords, and following the work undertaken on the revised development plan, Randgold has determined that the development plan will not satisfy Randgold's internal investment requirements," said Randgold.
"Accordingly, Randgold has decided to terminate the investment agreement entered into with AngloGold Ashanti, with immediate effect," the company added.
The mine is owned by AngloGold, and Randgold was set to operate the mine after the pair said back in September that the development plan met both company's criteria prior to due diligence being carried out.
By Joshua Warner; [email protected]; @JoshAlliance
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