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Business & Finance | May 15, 2004

Akrokeri-Ashanti suspends operations

CP

...as Ghana gold mine enters liquidation

TORONTO (CP) - Akrokeri-Ashanti Gold Mines Inc. has suspended operations and all of its directors and top executives have resigned as the junior miner's Ghana gold property enters liquidation.

The Toronto-based miner said Friday that Gerald Rupke, Douglas Mills and Michael Cawood, the company's three directors, have resigned, two months after it petitioned its 85 per cent controlled Ghanaian subsidiary was petitioned into bankruptcy.

Cawood has also resigned as Akrokeri-Ashanti's president and CEO, and Alan Legg has resigned as chief financial officer.

Akrokeri-Ashanti said in March that Bonte Gold Mines, its subsidiary in Ghana, would enter liquidation over a "shortage of dependable operating mining equipment" and a lack of funds to identify new areas of higher-grade ore. Earlier in March, Bonte had received a letter of demand from its largest creditor for $3.4 million US and was unable to make this overdue payment.

On Friday, Akrokeri-Ashanti said it has ceased operations.

It's unclear how much holders of 18 per cent secured notes and 14 per cent subordinated debentures will lose.

The company has 40.8 million common shares outstanding on the TSX Venture Exchange (TSXV:AKR). Those shares were unchanged at a penny on Friday, off a 52-week high of 13 cents.

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