*******NEWS*********
SEMAFO signs agreement with Ashanti
SEMAFO SMF
Shares issued 31,575,767 Jan 5 close $0.57
Wed 6 Jan 99 News Release
Also Ashanti Goldfields Co Ltd (AHD.U)
Mr. Benoit La Salle reports
SEMAFO has signed on Dec. 30, 1998 a joint venture agreement with Ashanti
Goldfields Company, through its wholly-owned subsidiary Samax Exploration,
to develop SEMAFO's 69.6 square kilometre Ebi/Teleku-Bokazo property in the
southwestern region of Ghana.
Following the company's press release in Stockwatch July 7, 1998, a first
three month due diligence was done by Samax with a successful outcome. In
the mean time Samax was acquired by Ashanti and a second due diligence was
performed by Ashanti, the end result being once again favourable, the joint
venture was therefore signed. In return for the delivery of a bankable
feasibility study within the next two years, Ashanti will earn a 75 per
cent interest in Ebi/Teleku-Bokazo prospecting licence. If warranted by the
study, Ashanti, as a second step, will assume the implementation of the
feasibility study and bring this deposit into production. Further
development of the mining property will thereafter be under the management
of Ashanti with a 25% participation of Semafo. As a priority once the mine
is in production, SEMAFO and Samax jointly on a 50/50 basis will be able to
reimburse themselves, from the free cash flow, for all exploration expenses
incurred since the beginning.
As mentioned earlier in previous press releases, the actual estimation of
2.8 million tons grading 2.8 g/t Au is only taking into account the data
down to a vertical depth of 70 metres even if some mineralization is
reported at depths up to 250 metres. |
