Randgold Resources Ld
28 April 2008
RANDGOLD RESOURCES LIMITED
Incorporated in Jersey, Channel Islands
Reg. No. 62686
LSE Trading Symbol: RRS
Nasdaq Trading Symbol: GOLD
RANDGOLD RESOURCES UPS STAKE IN TONGON PROJECT
Jersey, Channel Islands, 28 April 2008 - Randgold Resources has increased its
stake in the Tongon project in Cote d'Ivoire from 76% to 81% through the
acquisition of 5% of New Mining CI's interest in their joint venture. NMCI now
owns 9% of the project and the government of Cote d'Ivoire holds the remaining
Randgold Resources recently announced that it had decided to proceed with the
development of a US$270 million mine at Tongon. Site establishment is already
underway and mine construction will start later this year. The mine is
scheduled to produce its first gold towards the end of 2010.
The purchase consideration for the NMCI interest is a cash payment of US$2
million plus a funding option. Should NMCI elect not to fund its portion of the
Tongon development, Randgold Resources will provide the funding on its behalf in
exchange for a further 3% of the project, such funding to be repaid from the
project's future cash flows. In this event, Randgold Resources' stake in the
project will grow to 84%.
As part of the deal, the joint venture agreement, which previously applied to
all assets in the Cote d'Ivoire, has been restricted to opportunities found by
Randgold Resources or introduced by NMCI. As such, it no longer covers any
transactions Randgold Resources may enter into with third parties.
'We're pleased that we've been able to increase our interest in Tongon and in
our Ivorian joint venture while retaining NMCI as a partner,' chief executive
Mark Bristow said at today's Annual General Meeting in Jersey. 'We're on record
as being great believers in the future of this country, which is not only highly
prospective but still relatively unexplored, and has one of the best
infrastructures in this part of the world.'
Chief Executive Financial Director Investor & Media Relations
Dr Mark Bristow Graham Shuttleworth Kathy du Plessis
+44 788 071 1386 +44 20 7557 7730 +44 20 7557 7738
+44 779 775 2288 +44 779 614 4438 Email: firstname.lastname@example.org
Registered office: La Motte Chambers, La Motte Street, St Helier, Jersey JE1 1BJ
Tel: +44 1534 735 333
DISCLAIMER: Statements made in this document with respect to Randgold
Resources' current plans, estimates, strategies and beliefs and other statements
that are not historical facts are forward-looking statements about the future
performance of Randgold Resources. These statements are based on management's
assumptions and beliefs in light of the information currently available to it.
Randgold Resources cautions you that a number of important risks and
uncertainties could cause actual results to differ materially from those
discussed in the forward-looking statements, and therefore you should not place
undue reliance on them. The potential risks and uncertainties include, among
others, risks associated with: fluctuations in the market price of gold, gold
production at Morila and Loulo, the development of Loulo and estimates of
resources, reserves and mine life. For a discussion on such risk factors refer
to the annual report on Form 20-F for the year ended 31 December 2006 which was
filed with the United States Securities and Exchange Commission (the 'SEC') on
25 June 2007. Randgold Resources sees no obligation to update information in
this release. Cautionary note to US investors; the 'SEC' permits companies, in
their filings with the 'SEC', to disclose only proven and probable ore reserves.
We use certain terms in this release, such as 'resources', that the 'SEC' does
not recognise and strictly prohibits us from including in our filings with the '
SEC'. Investors are cautioned not to assume that all or any parts of our
resources will ever be converted into reserves which qualify as 'proven and
probable reserves' for the purposes of the SEC's Industry Guide number 7.
This information is provided by RNS
The company news service from the London Stock Exchange