Ashanti Secures Shareholders' Approval for Geita Sale

Shareholders of Ghana’s Ashanti Goldfields Company have approved the sale of a 50 per cent stake in AGC’s Geita Mine in Tanzania to AngloGold.

This followed an extraordinary General Meeting held at Obuasi. AGC and AngloGold would enter a joint venture to operate and manage the Geita Mine. Ashanti and AngloGold jointly announced their agreement to enter into the Transaction on June 26, this year subject to the approval of AGC’s banks and shareholders.

The banks announced their approval last month. The company’s creditor banks have also agreed to provide it with a working capital facility until the end of 2001. Through the sale AGC would raise three hundred and fifty five million dollars in cash.

AGC’s two principal shareholders—the government of Ghana and Lonmin Plc who together hold 51.4 per cent share capital have undertaken in writing to vote in favor of the transaction. It is expected that the Transaction will be completed in the near future when a further announcement will be made.