TIDMRRS
RNS Number : 7122Y
Randgold Resources Ld
08 September 2009
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RANDGOLD RESOURCES LIMITED
Incorporated in Jersey, Channel Islands
Reg.
No. 62686
LSE Trading Symbol: RRS
Nasdaq Trading Symbol: GOLD
RANDGOLD RESOURCES SIGNS LETTER OF INTENT TO SELL INTEREST IN KIAKA GOLD PROJECT
London, 8 September 2009 - Randgold Resources has signed a letter of intent
with Volta Resources Inc ("Volta" TSX:VTR) to sell its entire interest in the
Kiaka gold project in Burkina Faso to Volta for an aggregate cash consideration
of CAN$4 million and an aggregate share consideration of 20 million common
shares in Volta, to be paid and issued over a period of 24 months following the
closing of the disposal.
The Toronto-based and TSX-listed Volta is a mineral exploration company with a
strong focus on gold properties in West Africa, where it has active programmes
in Burkina Faso, Ghana and Mali.
Randgold chief executive Mark Bristow said that with the expansion of its
existing Loulo complex, construction of its new mine at Tongon and its advanced
Massawa and Gounkoto projects, the company already had a full development
pipeline.
"While Kiaka has considerable potential, it does not currently fit Randgold
Resources' development profile and is better suited to Volta, which has a strong
team and a good track record in the region," he said.
Bristow noted that following the completion of the transaction, Randgold
Resources would be a significant shareholder in Volta and would therefore retain
its involvement with Burkina Faso and the Kiaka project.
Closing of the agreement is subject to the completion of a definitive agreement
within 30 days from the execution of the letter of intent, during which period
Volta will carry out its final due diligence. The transaction will also be
conditional upon the approval of Volta shareholders, receipt of third party
consents and regulatory approvals, including the approval of the Toronto Stock
Exchange.
RANDGOLD RESOURCES ENQUIRIES
+------------------+------------------+--------------------------+-----------------------------+
| Chief Executive | Financial | Financial Adviser to | Investor & Media |
| Dr Mark Bristow | Director | Randgold | Relations |
| +44 788 071 1386 | Graham | ARBUTHNOT SECURITIES | Kathy du Plessis |
| +1 307 699 3564 | Shuttleworth | John Prior/Ed Gay | +44 20 7557 7738 |
| | +44 1534 735 333 | +44 20 7012 2100 | randgoldresources@dpapr.com |
| | +44 779 614 4438 | | |
+------------------+------------------+--------------------------+-----------------------------+
Website: www.randgoldresources.com
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 Tongon 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 2008 which was
filed with the United States Securities and Exchange Commission (the 'SEC') on
15 May 2009 and other filings made with the SEC. 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
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