Lihir Gold Limited

Lihir Gold Limited

June 10, 2008 07:41 ET

Equigold Closes Out Gold Hedging

BRISBANE, AUSTRALIA--(Marketwire - June 10, 2008) - Equigold NL ("Equigold") (ASX:EQI) and Lihir Gold Ltd (TSX:LGG)(ASX:LGL)(NASDAQ:LIHR) ("LGL") are pleased to announce the closure by Equigold of a significant portion of its gold hedge book. The closure covered 151,980 ounces of sold call options with strike prices of A$700 per ounce and expiries between December 2010 and December 2012, together with lease rate swap contracts.

The closure was completed by Equigold on June 6, taking advantage of a recent pull back in the spot gold price. It reflects the positive outlook of both boards for the gold price and is consistent with LGL's desire to remain a major unhedged gold producer.

The total cost of the close out was A$61 million and was funded in part by a loan from LGL. This transaction reduces Equigold's gold hedge book to 146,624 ozs of gold sold forward at A$600/oz for delivery on a quarterly basis until September 2010, representing approximately 9% of Equigold's gold reserves and 0.6% of LGL's gold reserves after completion of the merger with Equigold.

The merger of Equigold and LGL by scheme of arrangement is scheduled for completion on 17 June 2008.

Contact Information

  • Equigold
    Mark Clark
    Managing Director
    08 9316 3661
    Joe Dowling
    General Manager Corporate Affairs
    0421 587 755
    Joel Forwood
    Manager Investor Relations
    +61 7 3318 3331