Pretoria, 2 August 2006 - The Pretoria High Court today granted a final order of liquidation against MDM Ferroman (Pty) Limited (""MDM""), formerly the main contractor for the plant at Randgold Resources' (LSE:RRS) (Nasdaq:GOLD) new mine at Loulo in Mali. The application for the order had been brought by Randgold Resources' subsidiary, Société des Mines de Loulo (""Somilo"").
In December last year Somilo took back the Loulo project from MDM on the grounds that MDM had defaulted on the contract. The plant has since been substantially completed by a Randgold Resources team.
Dr Mark Bristow, chief executive of Randgold Resources and chairman of Somilo, welcomed today's judgment and said the granting of the final liquidation order opened the way for the company to proceed with additional claims against MDM for amounts owed. He said as MDM's chief creditor, Somilo would request the liquidators to convene a full enquiry into MDM's financial affairs and the conduct of its directors.