Akrokeri-Ashanti ups output

Junior Akrokeri-Ashanti Gold Mines (AAGM-C) has nearly doubled production rates at its Jeni alluvial property in Ghana, West Africa.

About 300 cubic metres of alluvium are being treated hourly, which is 87% higher than levels achieved in 1998. More than 46,000 oz. gold are expected to be produced by year-end, and production in 2000 is expected to top 59,000 oz.

In other developments, Akrokeri-Ashanti has revised its agreement to acquire an 85% equity interest in a Ghanaian company that owns two mining leases covering a combined 85 sq. km plus various mining assets, including an alluvial processing plant capable of treating 150 cubic metres per hour. The deal will now see the company pay US$550,000 for the shares (US$1 million less than the original price) in 12 monthly instalments starting early in 2000.

Meanwhile, the junior intends to raise $2.5 million by mid-December by allowing shareholders to buy one unit at $100 for every 1,630 shares held. A unit consists of one secured note worth $100 and 200 warrants, with the notes due to mature at the end of February 2001, bearing monthly interest of 1.5%; one warrant can be exchanged for one share at 22 within two years of the deal’s close, and management retains the right to redeem them at 0.1 each under specific circumstances.

Proceeds will be used to pay short-term debt. At the end of 1998, the company’s long-term debt stood at US$4.17 million.

For the three months ended Sept. 30, Akrokeri-Ashanti lost US$245,531 on revenue of US$3.8 million, compared with losses of US$589,801 on US$2.2 million a year earlier. The loss is attributed to heavy rains, low gold prices and the disposal of US$278,988 in mining assets.

Earnings in the first nine months of the year topped US$71,081 on revenue of US$9.4 million, compared with US$206,518 on US$8.1 million in the year-ago period.

Akrokeri-Ashanti has 40.8 million shares outstanding and, at presstime, was trading at 13.

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