Randgold Resources Limited and AngloGold Ashanti Limited have concluded an investment agreement aimed at the formation of a joint venture to redevelop and operate AngloGold Ashanti's Obuasi goldmine in Ghana.

In terms of the agreement, Randgold is expected to lead and fund a development plan designed to rebuild Obuasi as a viable long-life mining business with an attractive cost structure and returns.

Randgold chief executive, Mark Bristow said: "Obuasi is a world-class resource. We now have to see if we can convert it into a world-class mine.

We have a long history of cooperation with AngloGold Ashanti and we look forward to working with them again on charting a new course towards a viable future for Obuasi."

Also, the CEO, AngloGold, Srinivasan Venkatakrishnan said: "AngloGold Ashanti, has since 2012, effected a range of improvements to modernise Obuasi and in line with its strategy, it has progressed a feasibility study as the critical next step toward breathing new life into this important mine.

"Our partnership with Randgold has proved successful for well over a decade in bringing value from sustainable gold mining to all stakeholders and we believe that pooling the extensive expertise and the capital of these two

companies will improve our ability to bring Obuasi's world-class high-grade gold deposit to account," he said.