3rd Aug 2007 08:41
Allied Gold Limited03 August 2007 For immediate release 3 August 2007 Allied Gold Limited ("Allied Gold" or the "Company") GOLD HEDGING PROGRAM The Directors of Allied Gold Limited ("Allied") advise that all ConditionsPrecedent to its Initial Hedging Program have now been satisfied. Allied hasexecuted its gold hedging in accordance with the terms of the Finance FacilityAgreement with RMB Australia Holdings Limited and Macquarie Bank Limited. The Company has hedged 170,000 ounces of gold at an effective price of US$700per ounce for delivery between March 2008 and December 2011. The ParticipatingGold Forward Option that the Company has entered into also allows the Company toparticipate in any upside in the price of gold for 40% (representing 60,000 ozs)of the Company's hedging commitment while remaining protected at US$700 perounce at all times as a worst case on the entire 170,000 ounces hedged. The entering into the Initial Hedging Program is also the last ConditionPrecedent to allow initial draw down of funds from its US$25 million FinanceFacility. The facility is now available for immediate drawdown and will providethe required funding to bring the project to completion. The Company remains on time and within budget to commission the 84,000 ounce perannum Simberi Oxide Gold Project, with first gold production expected in theDecember 2007 quarter. ENDS For further information, please contact: Mark Caruso Tel: +61 8 93533638 Managing Director Roland Cornish Tel: 0207 628 3396 Beaumont Cornish Limited This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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