Ashanti Goldfields avoids collapse

The Ashanti Goldfields Company (AGC) said on Wednesday that it had reached an agreement with the government and other stakeholders on a High Court order against the company, news organisations reported.

The deal, reached between AGC, major shareholder Lomin plc and Adryx Mining and Metals Limited of Luxembourg, a minority shareholder, was announced after two days of talks in Accra that resulted in a board shake-up.

Ashanti, which got into financial difficulties last year when gold prices depreciated on the world market - instead of rising as AGC had anticipated - now expects to gain access to a US $100 million loan to allow it to complete a mine project in Tanzania and replenish its working capital, PANA reported the company as saying.