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Gold/Mining/Energy : Birim Goldfields Inc. (BGI-T) -- Ignore unavailable to you. Want to Upgrade?

To: Winzer who wrote (425)	1/11/2000 11:13:00 AM
From: m jensen	Read Replies (1) \| Respond to of 922

Ashanti to sell half of Geita project By Joel KibazoAshanti Goldfields, the troubled Ghanaian miner, has caved in to pressure to sell half its Geita gold project in Tanzania, long seen as the key to the company's future.The move will please the government of Ghana, which holds a 20 per cent stake in Ashanti. It has been advocating the sale of part of Geita to ease the financial crisis at Ashanti. However, one analyst said the planned disposal represented "selling the family gold".The news came on Monday as Ashanti confirmed that a group of disgruntled shareholders had started proceedings in the high court in Ghana. They would like to see the board replaced and are seeking a court order to force the necessary extraordinary general meeting.The six shareholders, led by Adryx Mining and Metals, an investment group whose head office is in Switzerland, together account for 5.1 per cent of Ashanti's equity. Adryx Mining is a subsidiary of Adryx and Oryx Group, a private natural resources company. Its head, Jean Claude Gandur, resigned from the Ashanti board last October.They are also seeking to restrain the board from selling parts of the company or entering any agreement that could restrict a new board's ability to deal with Ashanti's affairs. The legal action is said to have the blessing of the Ghanaian government.Ashanti said it would "vigorously defend" itself against the proceedings, which start on Thursday. The company said it had already started an auction to sell 50 per cent of the Geita project, which analysts have valued at around $400m. Barrick Gold, the Canadian group, is thought to be among the frontrunners to acquire the holding. It is believed to have tabled an offer of about $200m plus $140m working capital to help develop the mine.Placer Dome, also of Canada, and AngloGold of South Africa are among the other groups keen to buy into Geita. Lonmin, which holds 32 per cent of Ashanti, is reported to be keen to participate in the auction.Andy Pegge, at Laxey Investors, one of the shareholders backing the legal action, said: "This action can only help. Shareholder value has been undermined by either bad news or uncertainity. If we must go the hard route then we will."But Charles Kernot, mining analyst at Paribas, the investment bank, said: "Geita is very much a prime asset with the potential to become one of the world's great goldmines. It will be a mistake to sell part of it." ft.com