ACCRA, Ghana--(BUSINESS WIRE)--August 25, 2000--Ashanti Goldfields Company Limited (``Ashanti'') today completed the on-sale of certain assets of Teberebie Goldfields Limited to Gold Fields Ghana Limited, as announced when Ashanti acquired the Teberebie mine on 19 June through its acquisition of Pioneer Goldfields Limited from the Pioneer Group Inc. (``Pioneer'').
The assets sold include the Teberebie north pit, a gyratory crusher and associated fixed and mobile equipment for which Ashanti has received a cash payment of US$5 million. For the entire property, Ashanti paid Pioneer US$5 million cash and will pay the US$13.8 million balance over the next five years.
Ashanti will now concentrate on exploiting the resources at the southern pit of the mine. Ore will be hauled three kilometres to Iduapriem's Carbon-in-Leach plant for processing, allowing an extension of Iduapriem's mine life by eight years assuming an annual production of 150,000 ounces at an operating cash cost of about US$200 per ounce.
-0- Certain of the statements made in this announcement are forward-looking in nature. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future. These factors include, but are not limited to, statements made elsewhere in this announcement. In addition, risk factors relating to Ashanti can be found in its public SEC filings. Ashanti undertakes no obligation to update publicly any forward-looking statements whether as a result of new information, future events or otherwise. Any statements should be evaluated in light of these factors.
NOTE TO EDITORS: A copy of this release is available at http://www.ashantigold.com/releases.htm
Contact:
Enquiries: Ashanti Goldfields Company Limited Kweku Awotwi - Managing Director, Investor Relations Tel: +233 21 772331 James Anaman - Managing Director, Public Affairs Tel: +233 21 778178 Ernest Abankroh - Company Secretary Tel: +233 21 774977
4C Communications Limited Carina Corbett Tel: +44 20 8949 7171
Golin/Harris Allan Jordan Tel: +1 212 697 9191
