AFRICAN QUEEN REACHES ACCORD WITH NYANFOMAN CHIEF AT NOYEM-NYANFOMAN GOLD PROJECT IN GHANA, LEADING TO RELINQUISHMENT OF FIRST GROUP OF SMALL-SCALE LICENSES
Vancouver, British Columbia — AFRICAN QUEEN MINES LTD. (the “Company”) is pleased to announce that it has now signed an accord with the Nyanfoman Chief, Nana Ansah Sasraku Nipa Pepprah IV, in respect of development of its Noyem-Nyanfoman Prospecting License LVB 10244/1995 on Ghana’s renowned Ashanti Belt. Documentation has been executed providing for the relinquishment of licenses and/or applications covering four separate small scale mining licenses aggregating approximately 88.78 acres on or in close proximity to the Noyem A reef, with a view toward facilitating development of a potential large scale mining project on site.
The Company has identified a total of 26 adverse small-scale mining claims that it deems to be potentially in conflict with development of the project. Negotiations have been underway for many months concerning disposition of these small-scale licenses and relinquishment of this first group of four licenses should set the stage for further settlements in the near future. In consideration for their relinquishment of rights, a one-time cash payment is being made by the Company to each of the small-scale mining groups involved in the transaction, namely, Nana Ansah Sasraku Mining Group, Kwadzo Frimpong Mining Group, Ntoboase Bethel Mining Company Ltd. and Nyanfomang Youth Mining Group. In addition, the Company’s Ghana operating subsidiary, AQ Ghana Gold Limited, may purchase certain mining equipment on site and will endeavor to hire to the greatest extent possible the small-scale miners who are relinquishing their mining rights. The transaction is subject to final approval by the Ghana Minerals Commission (“MinCom”) under the Minerals and Mining Act 2006, Act 703. MinCom has been involved in the discussions to date.
According to Irwin Olian, CEO of the Company, “The current settlement marks an important milestone for African Queen and sets the stage for accelerated exploration and development of the Noyem-Nyanfoman Gold Project, with core drilling slated for later this year. We are very grateful for the cooperation and assistance of the Nyanfoman Chief, Nana Ansah Sasraku Nipa Pepprah IV. His vision of a large-scale gold project benefitting his community and the region as a whole contributed to this initial settlement and should lead to strong cooperation between the Company and its joint venture partner, Akan, with the local community going forward. In addition, we are very appreciative of the highly professional contributions of our Ghanaian team on site, headed by Michael Kotoka, Country Manager and Senior Geologist, who worked tirelessly with the local community leaders to achieve an accord.”
The Noyem-Nyanfoman 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 production with a stated resource in excess of 8 Million oz Au. 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 artisanal miners and a dispute with the small scale miners and local community has been ongoing for many years prior to the Company’s involvement with the project. The Company’s Phase 1 ground exploration program is presently underway with a view toward identifying drill targets for a core drilling program to be carried out this year.
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. 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.
The Company is an exploratory resource company with diversified mineral properties in Southern, East and West Africa. It is exploring its properties in Mozambique, Ghana and Kenya for gold and other metals and it is undertaking exploration in Botswana and Namibia for diamonds, gold and other metals. In Mozambique the Company has approximately 230 sq. km. under license for gold and metals under an agreement with another company. In Ghana it has 28.9 sq. km. under license for gold. In Kenya it has approximately 850 sq. km. under license for gold and metals, and a further 737 sq. km. of gold and other minerals licenses under agreements with two other companies. The Company’s licenses in Botswana comprise approximately 2890 sq. km. of diamond prospects. The Company’s 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. 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. The Company has its executive offices in Vancouver, Canada. The Company was incorporated under the laws of the Province of British Columbia, Canada on April 30, 2008 and received the southern African net assets in a spin off transaction related to the acquisition of Pan African Mining Corp. by Asia Thai Mining Co., Ltd.
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
Germany - +49 (0) 21141 740411
U.K. - +44 (0) 870 490 5443
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.