Accra, Feb. 23, GNA - Ashanti Goldfields Company (Ashanti) said it signed an agreement on Tuesday for a 100 million-dollar debt facility to complete its Geita mine in Tanzania and for general working capital purposes.

According to a statement issued by Ashanti in Accra, this is one of several agreements it signed on Tuesday, which, it said, it believes will secure its future. The others are renewal, under new terms, of its existing 270 million dollars Revolving Credit Facility (RCF) and consolidation of its existing bilateral facilities in a new tranche of the RCF.

Another is an amendment to the agreement with its hedge counter-parties 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 counter-parties on October 30, 1999 to facilitate the re-allocation of a proportion of them to the company's lending banks as part of the overall arrangements."

The statement said the 100 million dollars debt facility was arranged by Barclays Capital and was syndicated among existing lenders under the existing RCF. "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 at least 150 million dollars."

The statement quoted Mr 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 counter-parties 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."

Jonah said the negotiation of the facility was "extraordinarily complex," requiring agreement from each of the company's 22 lending banks and 14 hedge counter-parties.

Mr Gerard Holden, Global Head of Mining and Metals at Barclays Capital 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 counter-parties have provided an integrated package to assist the company during a time of need," he said. On October 30, 1999, Ashanti entered into an agreement with its hedge counter-parties whereby it agreed to issue warrants over approximately 15 per cent of the company's diluted issued ordinary share capital in return.

This was subject to the 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."

The statement said 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 counter-parties to some of the lending banks.

The statement added that Ashanti has invited certain individuals to join the Board as non-executive directors in accordance with the Memorandum of Understanding entered into between the Company, the Government of Ghana, Lonmin Plc and Adryx Mining and Metals Limited. It said the announcement of the new appointees would be made in due course.

The statement said certain aspects of the announcement was forward-looking in nature and involved risk and uncertainty because they relate to events and depend upon circumstances that will occur in the future.

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