Ashanti secures condition for deal

ASHANTI Goldfields has all but secured the moratorium it needs from its banks to trigger its $842 million (?510 million) merger with Lonmin, although the deal might not be signed until Friday.

Banks are understood to have told Ashanti that they will extend the credit limit on its hedge book, eliminating the margin calls that have left the Ghanaian gold producer with a cashflow crisis.

The calls, which are thought to total as much as $270 million, are the result of the gold price exceeding the prices contained in much of its hedge book.

Lonmin has said it would not proceed with its all-paper offer for Ashanti unless the moratorium was granted.

It is also believed that AngloGold, the South African mining house, and Barrick, the giant Canadian gold group, are poised to pounce on Ashanti should the Lonmin deal collapse.

Bobby Godsell, AngloGold's chief executive, said he would not rule out the possibility of making a move on Ashanti.

The market continued to show confidence in Lonmin's chances of securing Ashanti, pushing up Lonmin shares 2?p to 610p. This values Lonmin's offer at $7.52 a share, compared with Ashanti's last price of