Accra, Ghana (PANA) - Ghana's multi-national gold mining company, Ashanti Goldfields Company, which has been in financial turmoil of late, signed an agreement Tuesday for a 100-million-US-dollar debt facility to complete its Geita mine in Tanzania and for general working capital purposes.

The company said in a statement this was one of several agreements it believes will secure its future. The others are renewal, under new terms, of its existing 270 million dollar Revolving Credit Facility.

Another is an amendment to the agreement with its hedge counterparties under which the conditions to continue to permit margin-free trading for three years have been satisfied or waived.

"As part of that agreement the company has re-priced the five-year equity warrants issued to its hedge counterparties on 30 October 1999 to facilitate the re-allocation of a proportion of them to the company's lending banks as part of the overall arrangements," it said.

Ashanti was plunged into deep crisis late 1999 when its hedging policy backfired after the price of gold edged up suddenly plunging it into debt.

The statement said the 100 million dollars debt facility was arranged by Barclays Capital.

"The new facility is repayable on the earlier of 30 September 2000 and the date of completion of a sale of assets to raise a net amount of at least 200 million dollars or the completion of an equity issue to raise a net amount of a least 150 million dollars," it added.

The statement quoted Sam Jonah, chief executive Ashanti, as saying the signing of the new facility would allow the company to pursue its objective of getting the Geita project into production in the shortest possible time.

"Furthermore, the agreement reached with the hedge counterparties will enable the company to go forward and retain the benefits of hedge protection without the spectre of potential cash calls for a three-year period," he said.

Jonah noted that the negotiation of the facility was "extraordinarily complex" requiring agreement from each of the company's 22 lending banks and 14 hedge counterparties.

Meanwhile, the global head of mining and metals at Barclays Capital, Gerard Holden, was quoted as saying that the signing of the agreements provides "a solid platform for Ashanti's business going forward."

"Ashanti's lending and hedge counterparties have provided an integrated package to assist the company during a time of need," he said.

On 30 October, 1999, Ashanti entered into an agreement with its hedge counterparties whereby it agreed to issue warrants over approximately 15 percent of the company's diluted issued ordinary share capital in return.

This was subject to satisfaction of certain conditions for the right to trade margin-free for the next three years.

"After the initial three-year period, margin limits will be re-imposed at higher levels than existed before the crisis for the two years thereafter, finally returning to the limits that existed before the hedge crisis arose," according to the statement.

As part of this overall agreement with its banks, the company has agreed to reduce the subscription price of the warrants from 4.75 dollars to three dollars on the understanding that a proportion of the warrants will be re-allocated by the hedge counterparties to certain of the lending banks.