Ashanti presents finance plan, no details

LONDON, Dec 2 (Reuters) - Ghana's Ashanti Goldfields Co Ltd on Thursday presented a business plan to the counterparty banks on the other side of its gold hedging positions, industry sources said.

No details of the plan were immediately available, but the company is expected to issue a statement on Friday.


Ashanti came close to default after a spike up in gold prices flipped its derivative contracts from profit into loss two months ago.


It secured a three-year reprieve from paying margin calls on its hedging positions, conditional on presenting an acceptable plan, to demonstrate it has the resources to operate going forward, by December 2.


The creditors agreed on the 'margin holiday' in exchange for warrants giving them the right to buy up to 15 percent of Ashanti for $94 million.

Africa's third largest gold producer, which needs $110 million to bring its promising Geita mine in Tanzania into production, appointed Chase Manhattan and Barclays Capital to advise it on its financial options.


Ashanti Chief Executive Sam Jonah told Reuters last month that ``all options'' were under consideration, but he ruled out the sale of either the Geita or the century-old Obuasi gold mine in Ghana.


Lonmin Plc, which already owns 32 percent of Ashanti, last month withdrew a bid to take over the rest of the group following objections from the government of Ghana, which has a 20 percent stake and veto vote in the country's biggest company.