GHANA MINISTRY CONSENTS TO TRANSFER OF NOYEM LICENSE FROM NEWMONT TO AFRICAN QUEEN
Vancouver, British Columbia — AFRICAN QUEEN MINES LTD. (the “Company”) is pleased to announce that Hon. Alhaji Collins Dauda (MP), Minister of Lands, Forestry and Mines of the Republic of Ghana, has today consented to the Purchase and Sale Agreement dated September 29, 2009, as amended, between Newmont Ghana Gold Limited (“NGGL”), the Ghanaian subsidiary of Newmont Mining Corporation (NYSE: “NEM”), and the Company’s Ghanaian subsidiary, AQ Ghana Gold Ltd. (“AQGGL”), and transfer of the underlying Noyem-Nyafoman Prospecting License (the “License”) to AQGGL. Formal transfer of the License is pending payment of customary transfer fees and taxes. Senior management of the Company will be traveling to Ghana next week for meetings with Government officials, representatives of NGGL and members of the local community to discuss final details of the transfer and the way forward for the Company’s Phase 1 exploration program. A further update will be provided following such meetings.
The Noyem Gold Project. The License currently covers an area of approximately 28.9 sq. km. located within the Birim North District of Ghana’s Eastern Region, approximately 130 km. NW of Accra. It is at the northeastern end of Ghana’s well-known, gold-producing Ashanti Belt, near Newmont’s Akyem deposit which is presently under development for potential production. In addition to its close proximity to Accra which facilitates access, the Project is bisected in a NE-SW direction by a tarred road. It has long been host to large numbers of artisinal miners and in October, 2008, a shed-off area of 8.98 sq. km. adjacent to the current license area was reserved for small scale mining. There remain issues to be resolved with a number of the local small scale miners whose claims may be in conflict with contemplated development of a large scale project, and settlement negotiations have been progressing and are ongoing. Further details of the Project and the underlying agreement with NGGL are contained in the Company’s Press Release dated October 19, 2009.
The Akan Agreement. The Company’s rights to the Project are subject to an Earn-In and Joint Venture Agreement (the “Akan Agreement”), with Marshall Islands’ private company Akan Exploration Ltd. (“Akan”), under which the Company may earn up to a 75% interest in the Noyem Gold Project by funding prescribed stages from exploration through feasibility. Akan has the right to participate at its election pro-rata after the Company has reached 60% ownership interest by funding all costs through pre-feasibility. The Company is designated as manager and operator of the Project and holds the License on behalf of the joint venture partners, subject to full consultation with Akan on all material aspects of the Project.
According to Irwin Olian, CEO of the Company, “Approval of transfer of the underlying Noyem-Nyafoman Prospecting License to our Ghanaian subsidiary, AQGGL, now sets the stage for the commencement of our work programs at Noyem in 2011, with our partner Akan Exploration. Ghana is a great place to be working, with a long history of successful gold mining operations and a positive relationship between the Government and mining operators. The Noyem Project has a large body of historic work already defining highly prospective targets. We are delighted that the Project is now moving forward.”
About African Queen
The Company is an exploratory resource company with diversified mineral properties in Southern and West Africa. It is exploring its properties in Mozambique, Kenya and Ghana for gold and other metals and it is exploring its properties in Botswana and Namibia for diamonds. The Company’s licenses in Botswana and Namibia comprise approximately 9208 sq km of diamond prospects. In Mozambique it has approximately 230 sq km of gold and other metals licenses under an agreement with another company. In Kenya it has approximately 112 sq. km. of gold and other minerals licenses under an agreement with another company. Its operations in Botswana are carried out through its operating subsidiary, PAM Botswana (Pty) Ltd.; its operations in Namibia are carried out through its operating subsidiary PAM Minerals Namibia (Pty) Ltd.; its operations in Mozambique are carried out through its subsidiary PAM Mocambique Limitada and its operations in Ghana are carried out through its subsidiary AQ Ghana Gold Limited. Its operations in Kenya are being carried out through its operating subsidiary AQ Kenya Gold Limited. The Company has its executive offices in Vancouver, Canada.
ON BEHALF OF THE BOARD OF DIRECTORS OF
AFRICAN QUEEN MINES, LTD.
Chairman & CEO
For more information, contact:
President and CEO
Phone: (604) 899-0100
Fax: (604) 899-0200
Dubai - +971 55 997 0427
London - +44 (0) 7780 602 788
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of the information contained herein. The statements made in this press release may contain certain forward-looking statements that involve a number of risks and uncertainties. Actual events or results may differ from the Company's expectations.