Perseus advances Ghana gold project

Perseus Mining Ltd says it is on track to begin producing gold at its Central
Ashanti project in Ghana next year.
Procurement and engineering activities for the project, which was formerly named
Ayanfuri, were well advanced and environmental approvals were imminent, chief
executive Mark Calderwood told AAP on Friday.
Production is expected to commence in the third quarter of calendar 2011.
Gold reserves at the project currently stand at 2.1 million ounces and are expected
to be upgraded as resources are proved up to reserve status.
Mr Calderwood said the company was cashed up for its next priority, advancing the
Tengrela gold project in Cote d'Ivoire, which had potential to be another large
operation.
Australian and Toronto stock exchange-listed Perseus earlier this month raised $98
million from a share offering in North America.
The company expects to raise a further $29.1 million through a private placement
primarily targeting Australian investors and as much as $13.6 million through a
share purchase plan.
The proceeds will be used to progress development and exploration projects and for
working capital and general corporate purposes.
Mr Calderwood said that Ghana recently increased its mining royalty rate from three
per cent to five per cent, which still compared favourably with Australia's proposed
tax on mining "super profits".
He said he expected other countries would follow suit with a similar style tax
because "worldwide, all the government coffers are empty".
Shares in Perseus closed three cents, or 1.54 per cent, weaker at $1.92 on Friday.