Accra, 28 April 2004 - Randgold Resources (LSE:RRS) (NASDAQ:GOLD), has extended its footprint in Africa by entering into a joint venture with the Adansi Asaasi Mining Company (AAMCOL) to explore and exploit an area of interest on the Obuasi belt in the Ashanti region of Ghana.
The joint venture covers an area of interest bordering on the eastern boundary of Ashanti's Obuasi Mine. The joint venture has currently been awarded an exploration license covering 233km(2). The joint venture, which will be managed by Randgold, will immediately initiate an exploration programme. The first phase will cover the completion of a detailed generative programme, including airborne geophysics and follow-up field programmes.
Randgold will end up with a fully diluted interest of 63%, the Government of Ghana 10% with the remainder being held by Ghanaian partners. Randgold's commitment to earn into the joint venture is to complete a bankable feasibility study and to make certain option payments over a period of five years.
'The AAMCOL joint venture is one of the new opportunities we have recently been assessing in Ghana and elsewhere. Our decision to proceed with it is in line with our commitment to value creation through steady, systematic organic growth, solidly based on our successful formula of exploration, discovery and development. It also demonstrates our commitment to growing our business through local partnerships without being required to do so by law,' said chief executive Dr Mark Bristow.
Randgold currently has the Morila joint-venture mine in Mali, the Loulo mine (also in Mali) which is in the process of being developed, a prefeasibility project in the Cote d'Ivoire and a portfolio of prospective exploration projects in those two countries as well as Senegal and Tanzania.