Birim Goldfields and Ashanti Close Ghana Rights Sale

25th January 25, 2000, MONTREAL (Dow Jones)- Birim Goldfields Inc. said it has completed its agreement to sell mineral rights to a Ghana property to Ashanti Goldfields Co.

As reported, Birim agreed to sell the rights for $1.5 million, plus an advanced royalty payment for 100% of the mineral rights to 40 square kilometers of the Dunkwa property, which includes Birim's Mampon deposit. The transaction allows Birim's Mampon gold deposit in Ghana to be brought into production.

In a press release, Birim said all regulatory approvals have been received from the government of Ghana.

Birim said studies are underway which will determine how much it will receive from Ashanti as the advanced royalty payment.

Birim said that, to date, the Mampon gold deposit contains an independently calculated resource of 600,000 ounces of gold.

Birim said the agreement stipulates that, in the event of a rise in the price of gold, it will receive an additional 20 cents an ounce for each $1 improvement in the price of gold between $300 and $500 an ounce.

It said should the price exceed $350 an ounce, it is very likely that more ounces will be mined, translating into additional royalty payments to Birim.

Birim said following this transaction, it will still hold title to a 190 square-kilometer area of the Dunkwa property.

Birim said it expects to be drilling by February.