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BGF`s ann: Banking Facility & Sale of Assets

Document date:  Wed 29 Aug 2001
Published:  Wed 29 Aug 2001 10:48:03
Document No:  180301
Document part:  A
Market Flag:  N
Classification:  Issued Capital - Other

BALLARAT GOLDFIELDS NL                        2001-08-29  ASX-SIGNAL-G

HOMEX - Melbourne                                                     

Ballarat Goldfields NL bankers, ANZ Banking Group, have agreed, after
its monthly review, to extend the Company's overdraft facility, at
least until 30 September, 2001.

At that time a review of the facility's ongoing operation will again
be conducted. Issues relevant to the bank's review and continuing
support include; progress towards sale of BGF's portfolio of gold
properties and projects; and recovery of a major debt through
litigation in Germany.

The proposed sale of the minerals portfolio is contingent on, amongst
other things, the ability of the purchaser to raise investment
capital to satisfy the purchase price of $1 million plus additional
development capital of $5 million for reactivation of underground
exploration. The purchaser has been granted an exclusivity period in
which to conduct due diligence, expiring on 30 September 2001. As
part of its due diligence assessment the purchaser has commissioned
an independent expert's report into the economics and resource
profile of the Ballarat Gold Project.

Subject to the purchaser engaging the requisite financing support and
BGF obtaining shareholder approvals etc, completion of the sale
process is expected to be achieved by end of calendar 2001.

For further information, please contact:

Mr Andrew Woskett
Phone: 03 5333 5444