U.S. OPIC fund offers Ashanti backing -sources

By Ben Hirschler

LONDON, Oct 20 (Reuters) - A leading U.S.-based Africa fund has joined Saudi Prince Alwaleed bin Talal in offering financial support for Ghana's troubled Ashanti Goldfields Co Ltd, industry sources said on Tuesday.

People familiar with the situation said the U.S. government-backed Overseas Private Investment Corp's (OPIC) $500 million Africa Infrastructure Fund had signalled its backing to the Ghana government and its advisers.

The Ghana government, which has a 20 percent stake and a veto vote in Africa's third largest gold producer, is actively pursuing alternatives to a bid for Ashanti from Lonmin Plc.

Ashanti is battling for survival in the face of a liquidity crisis caused by huge losses on gold derivatives triggered by a sharp rise in the gold price in recent weeks.

The Africa Infrastructure Fund's approach is separate from that of billionaire Alwaleed, who confirmed on Tuesday that he was considering investing in Ashanti.

Alwaleed is thought to be considering extending a $400 million lifeline to Ashanti, probably in exchange for a stake in the company. The OPIC fund is likely to contribute a smaller amount.

Ashanti on Monday won a 72-hour breathing space from 17 gold hedging counterparties who agreed to extend a standstill on claims for hundreds of millions of dollars of margin calls until the close of business on Thursday.

Meanwhile, the chairman and chief executive of Lonmin -- which already owns 32 percent of Ashanti -- were in Accra on Wednesday for talks with the Ghana's cabinet, sources said.

Lonmin on Monday reduced its bid for Ashanti by 20 percent to $5.95 a share, valuing the whole company at $665 million, after studying the company's books.

Its bid is conditional on support from the government and a standstill on claims from the hedging counterparties.