Akrokeri-Ashanti (AKR-V) shares had a penny, or 25% of value, carved away Friday after the company announced that it had placed its 85%-owned subsidiary, Bonte Gold Mines, into official liquidation in Ghana.
The subsidiary operates the Bonte gold mine and holds a 30-year mining lease on the Esaase property.
The Ghanaian Registrar of Companies will now act as the official liquidator of Bonte under the laws of Ghana. Akrokeri says the decision is its best option as there are no laws for court protection from creditors during reorganization in Ghana.
Production at Bonte hasn’t met with expectation thanks to breakdowns, excessive rain and lack of operating capital. During December, the mine managed to spit out just 2,689 oz. of gold, with 2,851 oz. coming in January 2004; another 2,237 oz. were produced in February. The mine is the company’s only producing asset.
On Mar. 4, Bonte largest creditor demanded a payment of US$3.4 million, which the company was unable to pay. Akrokeri says it is also unable to make any other payments on its other overdue debt.
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