We will maintain the name "Ashanti" - Randgold

Accra, Oct 2, GNA - Randgold Resources Limited (RRL) on Thursday said the name Ashanti Goldfields Company (AGC) would remain if it won the bid for Company. Briefing the media in Accra, Mr Mark Bristow, Chief Executive Officer (CEO) of Randgold said the operational headquarters would be in Accra adding that the name "Ashanti" has been around for over 100 years and it would not be wise to wish it away on claim.

"The name Ashanti has a lot of history behind it. It has come a long way in advancing the hopes and shaping the future of millions of people across the continent and it will not be wise for anyone to change it just because of a merger or anything of the sort." He noted that Randgold offered a sound secure platform for the new Ashanti to become a powerful player on the world market. Mr Bristow said the government of Ghana's golden share, which has generated a lot of heat, recently would be maintained. The briefing was the first since the company made an indication for a bid in Ashanti and intended to state Randgold's position and reason for bidding for Ashanti.

Randgold is a South African based company listed in London and on the NASDAQ and has put in a bid of 1.4 billion dollars for Ashanti. He noted that the brand name would be re-launched on the London Stock Exchange with full UK index membership, saying the enlarged business would also be listed on the Ghana and the New York Stock Exchanges.

Mr Bristow responding to questions, explained that the bid for Ashanti aimed at creating a major, independent, Pan-African focused gold business, adding; "Randgold believes that the enlarged business will be a low cost gold producer with critical mass and significant growth potential and will not be self-financing from completion." He said the company believed that its proposal represented a genuine and attractive alternative to the transaction currently proposed by Anglogold, with a lower level of conditionality. Mr Bristow said he believed in Anglogold, but did not think that they have what it would take to turn Ashanti into the world-beater Randgold intended to do.

"Anglogold offer suggests to move the headquarters of the company to South Africa. However, you will realise that South Africa already has over six major mining firms. Why take another huge company such as Ashanti, there?" He questioned. Mr Bristow said; "it is better to keep it as it was, where investors can invest in an emerging market and yet reap the benefits". He said Randgold was bringing into the new enlarged Ashanti 1.4 billion dollars over the 51-year life of the Obuasi mine with 100 million dollars for project management.

Under the terms of the merger proposal, each holder of an Ashanti Share and each of the Ashanti Ghanaian Depository Receipts would be entitled to elect to receive 0.5 Randgold shares or 0.5 Randgold American Depository Receipts of 50 Randgold GhDRs. He said Randgold's proposal to Ashanti was to create a business that could self-finance itself, looking at the resources and reserves of the two companies. Mr Bristow said when given the nod, Mr Sam Jonah or AGC would be given the Chairmanship of the new company with Ashanti having the sole right of appointing its own Chief Executive.