Ashanti sinks $55m into Guinea gold.

 
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Ashanti Goldfields has signed a $40m project financing for the construction of the Siguiri gold mine in north-eastern Guinea.

The financing, arranged and fully underwritten by Soci[acute{e}]t[acute{e}] Generale through its London office, is structured as a senior debt facility to Ashanti's 85% owned Guinea affiliate, Soci[acute{e}]t[acute{e}] Ashanti Goldfields de Guinea (SAG), with a final maturity in 2001. Following project completion, which is targeted for mid-1998, the loan will be fully non-recourse to Ashanti. The facility will be syndicated to a small group of international banks.

In connection with the project financing, Ashanti has structured and undertaken a gold hedging programme for SAG with Soci[acute{e}]t[acute{e}] Generale's bullion team which will assure SAG a minimum gold price of $400 per ounce for 50% of its production during the life of the loan.

The project, which is being undertaken by Ashanti's group projects division at a...

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