SETTLEMENT PROCESS PROGRESSING AT AFRICAN QUEEN’S NOYEM-NYANFOMAN PROJECT; 3 MORE SMALL SCALE LICENSES RELINQUISHED
Vancouver, British Columbia — AFRICAN QUEEN MINES LTD. (the “Company”) is pleased to announce that documentation has now been executed providing for the relinquishment of three additional licenses and/or applications covering small scale mining licenses aggregating approximately 73 acres on or in close proximity to the Noyem A reef, with a view toward facilitating development of a potential large scale mining project at its Noyem-Nyanfoman Project on Ghana’s Ashanti Belt. Together with the four licenses covered by the initial settlement with the Nyanfoman Chief, announced in the Company’s Press Release dated July 14, 2011, the Company has now reached accords covering 7 of the 26 small scale licenses in the area of interest.
In consideration for their relinquishment of rights, a one-time cash payment is being made by the Company to each of the 3 small-scale mining groups involved in the present transactions, namely, Jah Bless Mining Company, Loyal Love Mining Limited and Yehowa Adom Mining Company. 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 Mining Commission (“MinCom”) under the Minerals and Mining Act 2006, Act 703. MinCom has been involved in the discussions to date. Negotiations are continuing with the holders of the remaining small scale licenses in the area of interest and the Company is optimistic that further settlements will be reached in the near future.
According to Irwin Olian, CEO of the Company, “With the encouragement of the Nyanfoman Chief and community leaders, momentum is now building for further settlements with the small scale miners at Noyem-Nyanfoman. We are moving ahead with plans to commence core drilling on a number of our key targets here this year, as the 7 settlements to date, combined with our existing large scale license, give us good access to the areas targeted for drilling.”
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 and core drilling is now planned to commence in several months.
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.
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.